By Daniel Kruger
The Federal Reserve Bank of New York added $75 billion to the financial system Friday, using the market for overnight repurchase agreements, or repos, to relieve funding pressure in money markets.
Banks asked for $75.55 billion in reserves, $550 million more than the amount offered by the Fed, offering collateral in the form of Treasury and mortgage securities.
The Fed's operation is the fourth time this week it has intervened to calm roiled money markets. Rates on short-term repos briefly spiked to nearly 10% earlier this week as financial firms scrambled for overnight funding. The actions marked the first time since the financial crisis that the Fed had made such moves.
(END) Dow Jones Newswires
September 20, 2019 09:20 ET (13:20 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.