partial quote from:
The Fed on Wednesday poured another $75 billion into the market following a $53 billion rescue by the NY Fed on Tuesday. Overnight lending rates have suddenly spiked, and the Fed is acting to bring them back down to keep markets functioning smoothly.
Before this week, the Fed hadn't launched an operation like this since 2008.
The fact the Fed has needed to pump $128 billion into the system over the past two days shows how a crack has emerged in a seldom-discussed corner of Wall Street that is central to the global financial system. It raises concern that the Fed is losing its grip on the short-term rates the central bank is supposed to control.
No comments:
Post a Comment