Fed Steps Into Repo Market to Control Soaring Rates

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The New York Fed stepped into money markets to tamp down soaring interest rates that had threatened the central bank's control of its benchmark

The Federal Reserve Bank of New York said it would carry out up to $75 billion of transactions known as repurchase agreements on Tuesday to relieve funding pressure in overnight money markets.

Strains developed Monday in short-term financing markets that suggested the central bank could lose control of its benchmark federal-funds rate.

 

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