Federal Reserve intervenes for third day to ease market strains
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 banks 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 Feds interventions.
Read more: https://www.ft.com/content/8f3d0374-dadc-11e9-8f9b-77216ebe1f17
This hasn't happened since 2008, DeJa Vu?
ooky
(8,929 posts)bucolic_frolic
(43,311 posts)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
(5,801 posts)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
(14,628 posts)Miguelito Loveless
(4,474 posts)Aw, Hell....
saidsimplesimon
(7,888 posts)Thank you for sharing
NickB79
(19,274 posts)SWBTATTReg
(22,171 posts)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
(45,540 posts)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
(36,747 posts)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
(5,801 posts)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
(11,993 posts)Finally, Trump is best at something.