Federal Reserve intervenes for third day to ease market strains

[yaesu]

Source: Financial Times

The Federal Reserve intervened in the US money markets for the third day in a row on Thursday as pressure mounted for the central bank to open a more permanent facility to ease pressure on a pivotal part of the financial system.

The New York Fed injected $75bn in overnight cash into the short-term lending market, and its auction was oversubscribed for the second straight day, with banks demanding almost $84bn.

It activated its repo operation on Tuesday for the first time since 2008, after technical factors sent a pivotal measure of overnight funding costs surging. On Wednesday it ran the operation again as markets remained strained.

The central bank’s policy rate climbed above policymakers’ target on Tuesday and receded back to the very upper end of the targeted range on Wednesday, according to figures published on Thursday — a sign of how tense markets remain, even amid the Fed’s interventions.


Read more: https://www.ft.com/content/8f3d0374-dadc-11e9-8f9b-77216ebe1f17

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This hasn't happened since 2008, DeJa Vu?

[ooky]

1. But the economy is so good.

[bucolic_frolic]

2. QE4 to ease the consequences of QE1-2-3

All debts are eventually extinguised in one form or another, be it default and bankruptcy or defact forgiveness by running the printing presses. The path is clear from here.

[not fooled]

3. Ruh roh

red don following in the footsteps of his predecessor installed fake prez, chimpy, and precipitating another financial crash.

I repeat: a mere 8 years after the worst financial debacle since the Republican Great Depression, 'Muricans let another puke get within stealing distance of the presidency. smh.

[fleur-de-lisa]

5. Chimpy! I thought I was the only one who still called him that.

[Miguelito Loveless]

4. Let me check on the engines of commerce...

Aw, Hell....

[saidsimplesimon]

6. I like the visual.

Thank you for sharing

[NickB79]

10. "I'm giving her all I've got, Captain!"

[SWBTATTReg]

7. Hmmm...three days of this so far, and the Fed hasn't seemed to get a grip on this ...

it does make one worry that they overlooked or didn't anticipate this happening. What else in the background that we haven't seen so far? Why is there (if they is one) pressure within the short-term markets? I'd like to know why there is a stain all of a sudden here? Perhaps more is going on here?

[IronLionZion]

9. Some more info on this

https://www.cnn.com/2019/09/18/business/ny-fed-overnight-lending-rescue/index.html

The connection to deficits and the tax cut is undeniable.

It truly alarms me that people still believe Republicans could be good for the economy.

[roamer65]

8. The deficit is too high.

The system is choking on all the extra Treasury paper.

This is gonna get very interesting, very soon.

I think the Fed will use QE to mop up the excess, but then the problem will switch over to the currency itself.

[not fooled]

11. red don must be in a quandary

as Thom Hartmann pointed out again today on his show, red don is on the record saying he loves recessions because he can buy up assets cheap.

On the other hand, if the economy tanks before the 2020 election, even putin couldn't get him "re-elected" and he faces the prospect of going from the White House to jail.

What's a corrupt, amoral sociopath to do???







Oh, and the countdown until pukes start blaming Social Security and Medicare for the cash crunch begins in 3...2...1...

[thesquanderer]

12. It took Bush 6 years to crash the economy, looks like Trump could do it in 3.

Finally, Trump is best at something.