Fed cut 0.25

[ma96782]

The Fed has done the long-awaited interest rate cut......down 0.25.

Aloha, Mark

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[dobeman]

I also read that the overnight rate on repurchase agreements spiked over 10% last night. It's supposed to follow the Federal Funds rate. The Fed Reserve of New York pumped $53 billion into the repo market last night, and promised more. Repo rates that high are never seen.

 

[Cavedweller]

More paper being pumped into the system. Gotta keep the credit bubble from popping.

Why is the NY Fed pumping billions into the money market?

For the first time in more than a decade, the US central bank this week stepped into financial markets to keep interest rates on short-term lending from popping above its target range. The New York Federal Reserve Bank conducted money market interventions on Tuesday and Wednesday and planned...

news.yahoo.com

 

[CountryGent]

Following the market news today has been interesting.

 

[Cavedweller]

NY Fed to pump $75 bn into money markets daily through Oct 10

The New York Federal Reserve Bank said Friday it will inject billions into the US financial plumbing on a daily basis for the next three weeks in an effort to prevent a spike in short-term interest rates. The Fed will offer up to $75 billion a day in repurchase agreements -- exchanging secure...

news.yahoo.com

 

[Cavedweller]

More paper being pumped in.

U.S. quarter-end funding costs stay elevated

A key borrowing cost for Wall Street remained elevated on Tuesday near the end of the quarter even after the Federal Reserve injected $30 billion in longer-term cash into the U.S. banking system a week after turmoil in money markets.

www.reuters.com