By the end of the day, the New York Fed announced increasing the overnight repos available from it to $100 billon and the 14-day repos from $30 billion to $60 billion.
What happened to spark the Fed to inject itself in the repo market?
Many interpreted the Fed intervening in the repo market as a canary in the coal mine.
The Fed normally does not involve itself in this market.
The last time the Fed injected itself in the repo market came in 2008.
The injection of funds into the repo market either strikes as a wise move to avert another such crises or foreboding of another such collapse.
The billions injected in the repo market by the Fed may be a signal that the trillion-dollar U.S. deficit does matter.
https://spectator.org/the-fed-becomes-the-repo-man/
What happened to spark the Fed to inject itself in the repo market?
Many interpreted the Fed intervening in the repo market as a canary in the coal mine.
The Fed normally does not involve itself in this market.
The last time the Fed injected itself in the repo market came in 2008.
The injection of funds into the repo market either strikes as a wise move to avert another such crises or foreboding of another such collapse.
The billions injected in the repo market by the Fed may be a signal that the trillion-dollar U.S. deficit does matter.
https://spectator.org/the-fed-becomes-the-repo-man/
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