Join institutional investors, analysts and strategists from the world's largest banks: Subscribe today
Already have an account? log in
Fed’s ‘Band-Aid’ Approach To Repo Chaos Opens Door To More Volatility, But Fear Likely Overblown
"Though they didn’t announce a standing repo facility, what they did in essence is set up a ‘sitting’ one that can stand up when it needs to", BMO's Jon Hill said, of the Fed's express willingness to continually intervene with liquidity injections in order to alleviate the acute funding stress that rippled across money markets ahead of the Fed meeting this week.
During the post-meeting press conference, Jerome Powell sought to play down the drama, which grabbed headlines on Monday and Tue
Sorry for the simple question: What does “To answer the question, is the Fed losing control, we say no it isn’t, but it must now move to allowing its balance sheet to grow in order to maintain its interest rate target. ” mean? It injects cash in the repo overshight system to keep the interest target – the fed rate at the determined rate? or is it something else.