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NY Fed to pump another $75 billion into money markets Friday

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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.

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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.

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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.

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The pro-Trump Super PAC at the center of the Ukraine scandal has faced multiple campaign finance complaints

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ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

Last year, a Department of Defense contractor quietly donated half a million dollars to a group supporting President Donald Trump’s reelection.

Once a watchdog organization noticed it, the contribution raised an alarm. Federal contractors are not allowed to donate to political entities. And groups are required by law to examine all donations for potential legal issues. If they discover that a contractor has made a contribution, the money has to be returned.

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Trump campaign fundraises off Mulvaney’s disastrous tirade by selling ‘Get Over It’ t-shirts

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White House chief of staff Mick Mulvaney's disastrous tirade on Thursday, in which he admitted there was a quid-pro-quo for delivering aid to Ukraine and told reporters to "get over it," has now become a fundraising pitch for President Donald Trump's reelection campaign.

Per BuzzFeed News' Miriam Elder, the Trump campaign on Friday started selling t-shirts that read "Get Over It" in which the "O" on the shirt is topped by a cartoon of President Donald Trump's hair.

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Trump is flailing as his customary ‘brazen it out’ strategy fails to halt the Ukraine scandal

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It's easy to see why acting White House chief of staff Mick Mulvaney decided it was time to move to the "brazen it out" phase of the administration's attempts to shut down Donald Trump's Ukraine scandal. The nose-thumbing method of PR has been highly effective for Trump since his campaign days, allowing him to steal the nickname "Teflon Don" from its original owner, infamous mafioso John Gotti. (Whose eventual fate — dying in prison — should, one hopes, give the current Teflon Don the night sweats.)

This article was originally published at Salon

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