NY Fed to pump $75 bn into money markets daily through Oct 10

Sun Online Desk

21st September, 2019 03:21:12 printer

NY Fed to pump $75 bn into money markets daily through Oct 10

 

The New York Federal Reserve Bank said Friday it will inject billions into the US financial plumbing daily for the next three weeks in an effort to prevent a spike in short-term interest rates, reports AFP.

The Fed will offer up to $75 billion daily in repurchase agreements exchanging secure assets for cash for very short periods — through October 10, it said in a statement.

In addition, it will offer three 14-day “repo” operations of at least $30 billion each.

Banks have struggled in recent days to find the cash needed to meet reserve requirements which has pushed up short-term borrowing rates.

 


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