Economics

Fed’s Tools Showing Signs of Stress Against the Cash Onslaught

  • Usage of overnight reverse repo facility jumps to $369 billion
  • Policy makers could tweak administered rates at June FOMC
BlackRock’s Rieder Says Fed Should Taper 'Sooner Rather Than Later'
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The deluge of cash in the short-end is threatening to create fissures in the Federal Reserve’s key rates corridor, increasing chances policy makers will be forced to adjust their tools to defend the floor.