Fed Officials Mull Reverse-Repo Rate Cut to Control Benchmark
- Central bank minutes reveal talk of a five-basis-point cut
- Fifty-one users parked $148.8 billion at the RRP on Tuesday
This article is for subscribers only.
The Federal Reserve is once again considering a tweak to one of the tools used by the US central bank to help control its main benchmark, according to its latest minutes.
Some policymakers at the November policy meeting said they see value in considering a “technical adjustment” to the offering rate on the central bank’s overnight reverse repurchase agreement facility, known as the RRP, so that it’s equal to the bottom of the target range for the federal funds rate.