US Federal Reserve intervenes for third time to ease money market strains
Financial Times | Thu, Sep 19, 2019
by Adam Samson in London and Joe Rennison in New York
Pressure is mounting on the Federal Reserve to ease the strain on US money markets after the central bank was forced to intervene on Thursday for the third time using a type of operation it last resorted to during the financial crisis a decade ago.
The Fed injected $75bn in overnight cash into the financial system. The auction was oversubscribed for the second straight day, with banks demanding almost $84bn in short-term funding. The central bank hastily activated its repo operation on Tuesday for the first time since 2008, after technical factors sent a pivotal measure of overnight funding costs surging.