Fed Begins Tri-Party Reverse Repos With Expanded Counterparties
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The Federal Reserve said it’s conducting tri-party reverse repurchase agreements with additional counterparties as policy makers prepare for the eventual withdrawal of monetary stimulus.
The transactions, part of a series of open-market operations that began in 2009, don’t represent any change in monetary policy, according to a statement on the Federal Reserve Bank of New York’s website yesterday. All eligible securities will be used as collateral today.