Fed focuses on repo market exit strategy after avoiding year-end crunch

NEW YORK - Wall Street’s worst fears of a year-end funding squeeze never materialized thanks in large part to the quarter-trillion dollars the Federal Reserve stuffed into the market to ensure nothing became gummed up.

“The repo operations are a band-aid, but the wound isn’t healed fully,” said Gennadiy Goldberg, an interest rate strategist at TD Securities. “It seems implausible to me that the Fed will be able to stop their repo operations by the end of January,” said Mark Cabana, head of U.S. rates strategy at Bank of America Merrill Lynch.

“There are people at the Fed who have a preference for the smallest possible balance sheet, and we just don’t know how much their views have evolved,” said Lou Crandall, chief economist at Wrightson ICAP, a research firm. Richmond Fed President Thomas Barkin said on Friday that in addition to a standing repo facility, long-term fixes for providing more liquidity in money markets could include adjusting liquidity regulations and setting restrictions on other programs that can affect reserves, such as the foreign repo pool.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Wall Street analysts expect a big 2020 from these internet stocks including Facebook, and AmazonWall Street analysts said they expect internet stocks to continue to soar in 2020. QE? We, the Libyan people, who voted for the Parliament of Libya, delegated the Libyan National Army to fight the terrorist militias of the Muslim Brotherhood in Tripoli, the militias of al-Qaeda and ISIS, and the terrorist militias that Turkey brought from Idlib, Syria.
La source: CNBC - 🏆 12. / 72 Lire la suite »

Wall Street's biggest bull says Iran jitters are overdone, the record market rally is intactOppenheimer Asset Management's John Stoltzfus believes renewed tensions with Iran won't derail the bull market. TradingNation Sounds like this dude drinking way too much kool aid. TradingNation TradingNation From the perspective of a Chief Investment Strategist on Wall Street, Iran jitters may be overdone. However, Iran has the 8th largest military in the world. The US has 65,000 troops in the Middle East. Iran has home field advantage. US military families may not be as confident.
La source: CNBC - 🏆 12. / 72 Lire la suite »