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Behold: a record $340 billion in reverse repos submitted by the world's financial institutions with the Federal Reserve, an increase of $200 billion overnight,
Now up to 10 billion. They are "tweaking" Fed Raises ReverseRepo Facility Maximum Bid to $10 Billion ...
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The Federal Reserve Bank of New York on Friday announced that it is tweaking an experimental program being tested in an effort to gain better control over short-term interest rates.
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Effective April 7, participants can do up to $10 billion in business each day with the facility, up from $7 billion, the New York Fed said.
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Behold: a record $340 billion in reverse repos submitted by the world's financial institutions with the Federal Reserve, an increase of $200 billion overnight,
quote: The purpose of the facility is to establish a floor on money market rates and to improve the implementation of monetary policy even when the balance sheet is large. Even if our balance sheet increases significantly further and stays very large for many years, it will be useful to have this facility available to improve monetary policy control.
So really the rapid rise could also be ascribed to the fact that they expanded the counterparties that could use it. But looking at it, it appears that it could be used to hide a large array of badly performing companies....
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