A man passes by the Federal Reserve Bank of New York.
Sept. 19, 2019 9:35 am ET
The Federal Reserve Bank of New York added $75 billion to the financial system Thursday, using the market for overnight repurchase agreements, or repo, to relieve funding pressure in money markets. Banks asked for $83.875 billion in reserves, $8.875 billion more than the amount offered by the Fed, offering collateral in the form of Treasury and mortgage securities.
The Fed’s operation is the third time this week it has intervened to calm roiled money markets. Rates on short-term repos briefly spiked to nearly 10% earlier this week as financial firms scrambled for overnight funding. The actions marked the first time since the financial crisis that the Fed had taken such actions.
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