Fed Adds $49.7 Billion to Financial System

The Federal Reserve Bank of New York in lower Manhattan. The bank added $49.7 billion to the financial system Monday.

Photo:

Claudio Papapietro for The Wall Street Journal

Sept. 23, 2019 9:00 am ET

The Federal Reserve Bank of New York added $49.7 billion to the financial system Monday, using the market for overnight repurchase agreements, or repo, to relieve funding pressure in money markets. Banks asked for $49.7 billion in overnight reserves, offering collateral in the form of U.S. Treasury and mortgage securities. The New York Fed had offered to add at least $75 billion daily to the financial system through Oct. 10.

Rates on short-term repos briefly spiked to nearly 10% last week as financial firms scrambled for overnight funding. The actions marked the first time since the financial crisis that the Fed had taken such transactions.

Write to Patrick Thomas at Patrick.Thomas@wsj.com

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