Fed Removes Reverse Repo Cap to Ensure Control Over Rates
Fed Raises Interest Rates, First Time in Nearly a Decade
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The Federal Reserve removed the daily limit on aggregate borrowings through its overnight reverse repurchase facility, previously set at $300 billion, in a step designed to make sure the benchmark interest rate stays inside its new target range.
The size of the facility will be "limited only by the value of Treasury securities held outright in the System Open Market Account that are available for such operations and by a per-counterparty limit of $30 billion per day," the Fed said in a statement on Wednesday in Washington.