Fed Steps Into Repo Market to Control Soaring Rates

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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

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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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