Economics
Fed Takes Big Step Toward Preventing More Repo-Market Blowups
- It’s been discussing a standing repo facility since 2019
- Fed is making sure repo turmoil is ‘never repeated,’ TD says
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The Federal Reserve has toyed for years with opening something called a standing repo facility to prevent short-term rates markets from blowing up. Following a 2019 disruption and another early in the pandemic, the central bank finally took that step.