Economics
Fed Pledges More Than $500 Billion to Keep Funding Markets Calm
- New York Fed releases new repo schedule through April 13
- ‘If you’re the Fed, you’d want to flood the market’ with cash
Photographer: Daniel Acker/Bloomberg
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The Federal Reserve is trying to get ahead of possible funding disruptions caused by the coronavirus, ramping up cash injections in the coming weeks to as much as $505 billion in a bid to keep short-term financing markets functioning smoothly through quarter-end.
The central bank’s New York branch said Wednesday that it would conduct additional repurchase-agreement operations that could take its support for this crucial corner of the financial markets beyond the total of $490 billion it offered over year-end. Policy makers are trying to avert a repeat of September, when short-term borrowing costs spiked amid imbalances in the supply and demand for cash.