overnight repo operation

Sizing Up the Cavalry

By |2019-09-25T18:39:57-05:00September 25th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

There’s been an unusual level of honesty coming out of Liberty Street of late. Not total honesty but certainly more than the usual nothing denials and dismissals. If you don’t immediately recognize the reference, that’s the street in NYC where FRBNY and its Open Market Desk resides. What is supposed to be the moneyed centered [...]

Much More Than This Week (TRDKWTAD)

By |2019-09-20T18:45:05-05:00September 20th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

According to the recent release of the Federal Reserve’s projected forecasts, that’s it. It wasn’t one and done like Chairman Powell had initially indicated, this “midcycle adjustment” hits two. And that is it, at least if you believe the current calculations spit out by the Fed’s models. It goes along with Powell’s blunt statement he [...]

Losing Control of Federal Funds: What’s Transmission Got To Do With It?

By |2019-09-18T11:47:17-05:00September 18th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

What’s transmission got to do with it? An odd question perhaps, but not when you step back and think about everything you’ve been taught or told about when it comes to this stuff. From the very beginning, they tell you unequivocally how the Fed is in the middle and everyone must simply obey. It does [...]

An Overlooked And Important Point: The Fed’s Overnight Repo Operation Had Less To Do With Repo Than You Are Led To Believe

By |2019-09-17T16:49:06-05:00September 17th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

There is one additional important point to note in all this repo uproar. Why did the Fed conduct the overnight repo operation this morning? The answer isn’t what you might think. It sounds like officials particularly at the Open Market Desk sounded the alarm about repo and the FOMC forcefully responded. And if you think [...]

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