Statement Regarding Repurchase Operations | Forex Factory

  • Statement Regarding Repurchase Operations

    From newyorkfed.org

    In accordance with the Federal Open Market Committee (FOMC) directive issued September 18, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct a series of overnight and term repurchase agreement (repo) operations to help maintain the federal funds rate within the target range. The Desk will offer three 14-day term repo operations for an aggregate amount of at least $30 billion each, as indicated in the schedule below. The Desk also will offer daily overnight repo operations for an aggregate amount of at least $75 billion each, until Thursday, October 10, 2019. Awarded ... (full story)

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Skracor247
Sep 20, 2019 10:45am
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I don't think there is a financial crisis going. I think the FED simply overestimated how much they would be able to reduce their balance sheet.

The FED can stop Tightening now and they will probably have to do a little more of this loosening to bring things back into balance.

Hyperinflation avoided FED! Now stop reducing the Monetary Supply!
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Skracor247
Sep 20, 2019 11:07am
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Quoting Guest
Actually they need to tighten the supply . It's this loose monetary policy which is creating asset bubbles in the financial markets and property as investors chase yields . It's a failed strategy/policy . Debt feeding debt is not a loop .
Yes, you are right! But they have made it abundantly clear they will NOT allow banks to fail!

In order to save the banks, they will have to maintain enough supply to continue to feed the need for more supply. LOL!

The wealth redistribution model that is currently in use only flows upward...

What they SHOULD do for the long term benefit of the people/nation, and what they WILL do to protect markets/profits are two different things. The FED has proven by its actions that it is serving the banks/funds rather than the nation.

Besides no one that I know of wants to go through the pain of normal economic pruning, where the bad branches are cut out and new better/more fruitful branches are allowed to take the place of the old.
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spymez
Sep 20, 2019 10:22am
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looks like a liquidity problem reminiscent of the GFC

here we go again. Buckle Up.
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Trader#761B
Sep 20, 2019 10:49am
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Actually they need to tighten the supply . It's this loose monetary policy which is creating asset bubbles in the financial markets and property as investors chase yields . It's a failed strategy/policy .

Debt feeding debt is not a loop .
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