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MNI BRIEF: Fed To Expand SRF Around Year-End Market Pressures

MNI (WASHINGTON) - The Federal Reserve Bank of New York will expand the timing of the Standing Repo Facility around year-end to better understand how the facility's timing can impact the effectiveness of the tool during money market pressures. 

The Fed is conducting an additional overnight SRF operation on each business day beginning December 30 through January 3 from 8:15 to 8:30 a.m. ET because there's likely to be some money market pressures at that time and those pressure offer a better chance that it will be economically convenient for counterparties to use the facility. There is also a good chance officials will learn whether adding another earlier auction could help make the facility more effective. 

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MNI (WASHINGTON) - The Federal Reserve Bank of New York will expand the timing of the Standing Repo Facility around year-end to better understand how the facility's timing can impact the effectiveness of the tool during money market pressures. 

The Fed is conducting an additional overnight SRF operation on each business day beginning December 30 through January 3 from 8:15 to 8:30 a.m. ET because there's likely to be some money market pressures at that time and those pressure offer a better chance that it will be economically convenient for counterparties to use the facility. There is also a good chance officials will learn whether adding another earlier auction could help make the facility more effective. 

Keep reading...Show less