Fed Begins Adding Reserves to Banking System With Repo Agreement
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The Federal Reserve is adding reserves to the banking system through a repurchase agreement as part of a program to test its operational readiness.
The transactions, part of a series of temporary open-market operations that began in 2009, don’t represent any change in monetary policy, according to an Aug. 2 statement on the Federal Reserve Bank of New York’s website. The central bank added $210 million in reserves Aug. 3.