NY Fed concludes first repo in 11 years amid liquidity concerns
- 5 years ago
The New York Federal Reserve has bought around 53 billion U.S. dollars in treasuries and other securities, after the benchmark Fed-funds rate moved outside its target range.
According to reports, the NY Fed successfully launched the so-called overnight "repo operation" on Tuesday, as part of efforts to ease pressure on markets caused by skyrocketing borrowing rates.
On Monday, the effective fed-funds rate, a benchmark that influences borrowing costs, stood at 2.25 percent, up from 2.14 percent last week.
The NY Fed also said it was prepared to pump as much as 75 billion dollars into broader markets in order to hold the Fed's key rate inside its target range of 2 to 2.25 percent.
The rescue operation is the first by the NY Fed in over ten years.
According to reports, the NY Fed successfully launched the so-called overnight "repo operation" on Tuesday, as part of efforts to ease pressure on markets caused by skyrocketing borrowing rates.
On Monday, the effective fed-funds rate, a benchmark that influences borrowing costs, stood at 2.25 percent, up from 2.14 percent last week.
The NY Fed also said it was prepared to pump as much as 75 billion dollars into broader markets in order to hold the Fed's key rate inside its target range of 2 to 2.25 percent.
The rescue operation is the first by the NY Fed in over ten years.