Demand for Fed’s reverse repo hits new record
FOMC increases interest rates on RRP deposits by 5bp, spurring new demand
The New York Fed accepted a record $755.8 billion through its overnight reverse repurchase window on June 17.
The increase followed the Federal Open Market Committee’s decision, on June 16, to raise the interest rate offered on reverse repo deposits by 5 basis points, to 0.05%. The June 17 figure marked a 45% increase over the $521 billion absorbed the previous day.
At its June 15 and 16 meeting, the Federal Open Market Committee decided to keep its policy rate steady at 0–0.25%. The FOMC has
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