This massive, daily Fed intervention business appears to be getting worse & worse. What is the Fed hiding? The longer this goes on & the bigger the interventions get, the more my confidence is shaken. I expect that's true for other investors too. t.co/ozqdtUwuwv
— fred hickey (@htsfhickey) October 24, 2019
Not QE just got 60% larger. The New York Fed announced "it is increasing its temporary overnight repo operations to $120 billion a day from $75 billion." There is nothing temporary about this increase, as Not QE will be far larger and even more destructive than QE. Got Gold?
— Peter Schiff (@PeterSchiff) October 24, 2019
I'll go out on a limb here, but a financial system that requires over $100B of liquidity injections every day, temporary, permanent or otherwise, has major issues.
— Sven Henrich (@NorthmanTrader) October 23, 2019
The Federal Reserve Bank of New York said Wednesday that it would increase the size of its overnight repo operations to $120 billion from the current $75 billion.
The Fed announcement came without explanation. Recent Fed offerings for the short term repurchase agreements, or repos, have been oversubscribed, meaning banks sought more liquidity than the Fed was prepared to provide.
On Tuesday, the Fed injected nearly $100 billion in combined overnight and slightly-longer term loans to banks.
Senator Elizabeth Warren recently addressed a letter to Treasury Secretary Steven Mnuchin in his role as chair of the Financial Stability Oversight Council, asking for an explanation for why banks have recently required these huge daily cash infusions.