This is a syndicated repost published with the permission of NY Fed | Temporary Open Market Operations. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.
To implement monetary policy, short-term repurchase and reverse repurchase agreements are used to temporarily affect the size of the Federal Reserve System’s portfolio and influence day-to-day trading in the federal funds market.