The Fed is expanding its de facto Standing Repo Facility.
Notice the words, “at least.”
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 OperationsOctober 23, 2019The 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
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