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Insights Issues in the Repo Market, Explained
Nov 21, 2019
- Recent turmoil in the repo markets has led the Federal Reserve to take steps to boost liquidity to the financial system.
- Issues arose as bank reserves became squeezed, resulting in too many financial institutions chasing too few available funds.
- In our view, the Fed should continue to expand its balance sheet a bit more in order to safeguard well-functioning repo markets.