FOMC considering repo market tools, minutes show
Meeting participants worried that standing repo tool might create moral hazard
The Federal Open Markets Committee may add a new repo market intervention to its policy framework, according to the recently-released minutes of its October 29 and 30 meeting.
The FOMC is considering two possible options to prevent further sudden repo rate rises, like those in mid-September, which forced the Federal funds rate up.
The first option under consideration is conducting “modestly sized” and “relatively frequent” repo operations to provide a degree of readiness should large demands
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