Fed’s oversight practices may have contributed to repo market issues -Quarles

Financial Post | Dec 4, 2019 at 4:26 PM
  • The U.S. Federal Reserve may have contributed to recent turmoil in overnight lending markets through oversight practices that possibly discouraged banks from investing, a senior U.S. central bank official said on Wednesday.
  • Rates for those loans suddenly spiked to 10% this fall, forcing the Fed to provide liquidity for the first time since the global financial crisis more than a decade ago, and that support is still ongoing.