General World News

In the wake of its recent crisis, the Fed boosts repo operations to calm lending worries before the new year

New York Federal Reserve Bank

  • The Federal Reserve Bank of New York boosted its repo operations Thursday, increasing planned capital injections as its key lending rate faces year-end pressures.
  • The central bank lifted its limit for operations scheduled between December 31 and January 2 to $150 billion from $120 billion, according to a Thursday release.
  • The expanded repurchase agreements arrive as banks look to prove liquidity in end-of-year evaluations. Lenders tend to rein in free cash ahead of the tests, and the activity could pull the overnight funding rate above its intended range for the second time this year.
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    Source:: BusinessInsider.Com