The Fed is sharply increasing the amount of help it is providing to the financial system

Why is this not major headlines?

Why is Trump not mentioning?

What really is going on here…


The Federal Reserve is ramping up the amount of temporary liquidity injections it is providing for overnight lending markets.

Starting Thursday, the repo operation offerings will escalate to $120 billion from the current $75 billion as the central bank continues to calibrate the right amount of funding needed to keep the markets operating properly and to hold the overnight funds rate within its target range.

We are primarily funded by readers. Please subscribe and donate to support us!

The announcement came from the New York Fed, which did not elaborate on the reason for the increase. However, it comes a day after the Fed injected just shy of $100 billion into the system via an operation where it provides banks with cash in exchange for high-quality assets like government bonds.

In addition to the repo increase, term repo operations are rising to $45 billion, from $35 billion. In addition to those two operations, the Fed recently announced a permanent operation that will target $60 billion a month initially in bond purchases that will resemble the three rounds of quantitative easing employed during and after the financial crisis.

h/t mji71


Leave a Comment

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