среда, 18 сентября 2019 г.

Fed preps second $75 billion blast with repo market still on edge

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Bloomberg/Liz McCormick/9-17-2019

“The moves underscored just how deep the structural problems in U.S. money markets have become. Namely, there is often not enough cash on hand at major Wall Street firms to meet the funding demands of a market trying to absorb record Treasury bond sales needed to cover U.S. budget deficits.”

USAGOLD note:  Interesting that this “structural problem” would surface in the middle of an FOMC meeting.  One has to ask a basic question:  Where is the “cash” coming from to meet these funding demands? This Bloomberg article suggests that the Fed may be forced to suddenly launch a new round of quantitative easing to address the problem.


Related: Wall Street raises questions about Fed’s late action on funding squeeze/Joy Wiltermuth/MarketWatch


Source: USA gold

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