US Fed readies second intervention after money market ‘shock’

Irish Times | Sep 18, 2019 at 12:55 PM
  • The Federal Reserve is poised on Wednesday to inject billions of dollars into the financial system in its second intervention this week after a scramble for cash sent shockwaves through a key part of the US money markets.
  • It comes after the central bank was forced into a similar operation on Tuesday after a severe imbalance in the so-called repo market sent the cost of borrowing cash overnight, known as the repo rate, surging to a historic peak.
  • Analysts specifically pointed to corporations pulling billions of dollars out of money market funds.