Brian Chappatta, Columnist

Fed Brings a Bazooka to Its Fight With the Repo Market

The central bank will buy $60 billion of Treasury bills a month, exceeding some expectations.

October 11, 2019 at 5:02 PM UTC

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

The Fed came prepared.
Photographer: Luke Sharrett/Bloomberg

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Strategists at Bank of America Corp. published a report on Friday that said “the Fed needs a bazooka of asset purchases.” However, they said, that’s unlikely to happen, and the central bank will probably buy only $25 billion to $50 billion a month in Treasury bills, “to guard against the perception of QE.”

Well, the Federal Reserve brought the heavy artillery.