The Federal Reserve Bank of New York will commence a new round of small reserve repo operations to include its newly expanded list of primary dealers and money funds, The Wall Street Journal reports. The transactions, part of a series of open-market operations first announced in December 2009, do not represent any change in the Fed’s monetary policy.
Reverse repos will enable the Fed to use the $2.4 trillion in securities it has acquired over recent years. The Fed can lend out some of the $1.3 trillion in Treasurys, $143 billion in federal agency securities and $948 billion in mortgages, it currently owns.
Click here for the story from The Wall Street Journal.
Click here for additional coverage from Bloomberg.