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Fed Pumps Big, Cuts Repo Rate by 3/8

The Fed sent a message this morning that hints at a Fed Funds target cut of 3/8 to ½ point but there may be extenuating circumstances that have nothing to do with rate setting. They did a gigantic net add of $17 billion by injecting $11 billion in 2 day repos and $6 billion in overnight repos versus no expirations. That brought the 5 day net to a whopping add of $23 billion, a complete about face from a week ago. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.

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