Bitcoin Highlighted as Fed Continues Pumping Liquidity Into Economy
By Jon Buck
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In spite of news that the economy appears stable, the Federal Reserve
Bank of New York (Fed) had continued injecting liquidity into the
market. The most recent action involved an almost $58 billion repurchase
(repo) agreement.
The agreement took on two parts—one for $26 billion with an overnight
term. The second for approximately $32 billion carried a term of 14
days.Fed Pumping in Cash
The Fed’s policy of repo agreements was moving in earnest before the 2008 financial crisis. These short term collateralized loans are designed to push cash into banking institutions. With the securities as collateral, the loan is low-risk for the Fed but helps the bank with liquidity issues.Continue Reading
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