Fed’s Fisher, Plosser Dissented Against Extension of Repo Tool

Federal Reserve Bank of Dallas President Richard Fisher and Philadelphia’s Charles Plosser dissented last month against the extension of the Fed’s new fixed-rate reverse repurchase program, objecting to the absence of limits on the amount of money counterparties can post.

“Fisher and Plosser dissented because of their preference for retaining a cap on the maximum size of counterparties’ offers during the extension,” according to minutes of the Federal Open Market Committee’s Jan. 28-29 meeting released today. Plosser “also preferred a shorter extension of the exercise.”