For a fourth straight day, the New York Federal Reserve Bank on Friday will inject billions into US money markets to preserve the US central bank’s control over short-term interest rates.
The New York Fed said in a statement on Thursday it will again conduct a repurchase agreement operation of up to $75 billion to offer more liquidity to the system that has been running short on cash.
It offered the same amounts in repo operations on Tuesday, Wednesday and Thursday — for a total of just over $200 billion — but in the past two operations, demand outstripped the amount offered.
Federal Reserve Chairman Jerome Powell this week showed little concern about the glitch in the crucial plumbing of US financial markets, arguing that it did not reflect on the real economy or monetary policy.
Powell and economists have attributed the liquidity crunch to huge cash withdrawals that sucked money out of banks — corporate tax payments that coincided with a surge in Treasury bond issuance, which shifted money out of the market and into government coffers.
When the withdrawals threaten to cause bank reserves to fall below required levels set by the Fed, banks use very short-term, usually overnight, borrowing to plug the hole.
The Fed also adds or removes liquidity to keep interest rates in line with the desired target, which is the job of the New York Fed.
But the shortage of cash in recent days prompted the New York Fed to pump just more than $275 billion into the short-term market as the interest rates demanded for overnight lending soared, threatening to break out of the Fed’s target range.
The central bank cut benchmark lending rates interest rate on Wednesday to provide a boost to the American economy, but also made some technical adjustments to help it maintain market rates in line with the range, including cutting the interest it offers on bank reserves held at the Fed that are in excess of the minimum required level.
John Oliver rips Fox News’ Tucker Carlson for urging ‘order’ from people of color — but never demanding it of police
John Oliver opened his Sunday show, shredding Fox News host Tucker Carlson for uring "order" among protesters, but refusing to urge "order" to police and "wannabe police" who can't stop killing people.
It's a lot, Oliver explained. "How these protests are a response to a legacy of police misconduct, both in Minneapolis and the nation at large and how that misconduct is, itself, built on a legacy of white supremacy that prioritizes the comfort of white Americans over the safety of people of color."
While some of it is complicated, Oliver conceded, most of it is "all too clear."
Cars set on fire blocks from White House as DC protests turn violent
The Washington, D.C. protests turned violent as the city approached the 11 p.m. curfew the mayor instituted Sunday afternoon.
The policy of D.C. police is that when they are attacked, they advance forward. So, when fireworks were fired, the line of officers began pushing the protesters back further from the White House. Behind the line of police officers also stand a line of National Guard troops that President Donald Trump has demanded stand watch in the city.
Lights that normally shine on the White House have also been turned off, reporters revealed.
Cincinnati sheriff deputies replace American flag at the Justice Center with ‘thin-blue-line’ flag
Cincinnati police were filmed replacing the American flag that hangs over the Justice Center in Ohio's third-largest city. They then replaced it with the thin-blue-line flag, that was created to advocate for law-enforcement during Black Lives Matter Protests.
During the Charlottesville, Virginia riots, right-wing and white supremacist activists carried the thin-blue-line flag along with the Confederate flag to speak out against Black Lives Matter.
While the flag may have been created in support of law enforcement, it has been adopted by white supremacists and taken on a darker meaning.