From today’s FOMC minutes: The Fed is allowing banks to perform overnight lending on securities.

by laflammaster

https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20220126.pdf

They’re increasing liquidity of the SOMC market by allowing this.

Seems that they know banks are in deep shit (maybe a result of swaps data release?).

Liquidity gives them another day to stay afloat.

Leave a Comment


This site uses Akismet to reduce spam. Learn how your comment data is processed.