Fed to Conduct Reverse Repos With Funds Added as Counterparties
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The Federal Reserve will resume conducting tri-party reverse repurchase agreements tomorrow as it prepares for the eventual withdrawal of the unprecedented monetary stimulus provided by the central bank.
The transactions, part of a series of open-market operations first announced in December 2009, don’t represent any change in monetary policy, according to a statement on the Federal Reserve Bank of New York’s website. One set of operations tomorrow will involve only the money market mutual funds added as potential counterparties in January. A second series tomorrow will be open to all eligible counterparties.