Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

Fed Expands De Facto Standing Repo Facility

The Fed is expanding its de facto Standing Repo Facility.

Notice the words, “at least.”

Liquidity moves markets!

Follow the money. Find the profits! 

Nothing to see here. It’s not a standing repo facility. It’s just at least $120 billion a day. Move along. 

Statement Regarding Repurchase Operations
October 23, 2019

The Desk has released an update to the schedule of repurchase agreement (repo) operations for the current monthly period.  Consistent with the most recent FOMC directive, to ensure that the supply of reserves remains ample even during periods of sharp increases in non-reserve liabilities, and to mitigate the risk of money market pressures that could adversely affect policy implementation, the amount offered in overnight repo operations will increase to at least $120 billion starting Thursday, October 24, 2019.  The amount offered for the term repo operations scheduled for Thursday, October 24 and Tuesday, October 29, 2019, which span October month end, will increase to at least $45 billion.

Detailed information on the schedule and parameters of term and overnight repurchase agreement operations are provided on the Repurchase Agreement Operational Details site.

This news came out just as I was posting this: Federal Reserve Repo Man – No Rant Today, Just the Facts and Meyer Lansky

Fed De Facto Standing Repo Facility

Knowledge is Your Power With Liquidity Trader

Meanwhile, the question to us as investors is how do we protect our own capital in a Humpty Dumpty world. To answer that, I analyze macro liquidity, show you the forces that dictate the trends, and provide common sense recommendations on how to manage your money accordingly at Liquidity Trader. So if Humpty Dumpty does have a great fall, your portfolio won’t.

Get 90 Days of Liquidity Trader Risk Free

Read Lee Adler’s Liquidity Trader risk free for 90 days if you join now! Satisfaction guaranteed or your money back. 90 day risk free trial offer is for first time subscribers only.

Try Lee Adler's Technical Trader risk free for 90 days! Follow the money. Find the profits!

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both analytical and sales capacities. Prior to starting the Wall Street Examiner I worked as a commercial real estate appraiser in Florida for 15 years. I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. My perspective is not of the Ivory Tower. It is from having my boots on the ground and in the trenches of the industries that I analyze and write about today. 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.