Federal Reserve intervenes for third day to ease market strains [View all]
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
This hasn't happened since 2008, DeJa Vu?
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