Fed Adds $26.7 Billion in Liquidity to Markets

Eligible banks tap far less liquidity than what the central bank was willing to provide

The Federal Reserve Bank of New York added $26.7 billion in temporary liquidity to financial markets Friday.

The central bank added the money via a three-day repurchase agreement, or repo operations. Fed repo interventions take in Treasury and mortgage securities from eligible banks in what is effectively a short-term loan of central bank cash, collateralized by the securities.

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