NY Fed will again inject USD 75,000 million into the market

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The Federal Reserve System (EDF) on Tuesday had intervened urgently, for the first time in more than a decade, buying short-term bonds for $ 53 billion, with the aim of compensating for the lack of liquidity in money markets.

Like the previous ones, Friday's intervention should help "keep federal fund rates in the range of 1.75% to 2%," the official statement said.

On Wednesday, the president of the central bank, Jerome Powell, downplayed concerns about lack of liquidity and said it "had no impact" on the economy or monetary policy.

He added that there were a number of technical factors behind these issues, including a fiscal term for companies seeking liquidity, as well as an increase in Treasury bond issues to finance the government deficit.

These interventions are related to the purchase of debt securities (Treasury bills, bonds attached to mortgage loans) by the Fed at one day.

Source: AFP



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