Fed’s Crisis Dollar Sales Pared Back as Global Tensions Subside
- Central banks jointly announce fewer dollar funding auctions
- Decision effectively lowers financial-stability threat level
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The Federal Reserve and global counterparts will revert to fewer auctions for dollar funding after financial-market tensions in the wake of US bank failures subsided.
The joint announcement on Tuesday shifts the frequency of such emergency liquidity provision to a weekly basis rather than the daily offerings announced on March 19. The lower frequency of auctions will begin on May 1.