Tag Archives: federal reserve repo market

The Fed Loses Control of REPO Markets; Banks, Bonds, and the Federal Reserve, Explained

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Banks are sitting on enormous piles of cash with little to do with it. People aren’t taking out loans and they have serious restrictions on what assets they can buy. Banks were going all in on bonds until the government hit the debt ceiling and stopped issuing fresh bonds. Now they’re lending it to one another and writing out the Federal Reserve. Here’s what’s happening.

The Federal Reserve Goes All In On Liquidity; Unlimited Quantitative Easing and REPO Interventions Explained

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Today the Federal Reserve announced unlimited quantitative easing measures to stimulate liquidity in the markets. This, combined with the Federal Reserve’s actions in the REPO overnight markets, is an attempt to get banks to make more loans to consumers. Here is exactly what’s happening.