Fed Pumps-In Over 12.7 Million Bitcoin Equivalent of Funds to Keep the Financial Market Liquid
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➖Fed repo interventions to keep the financial market liquid continues
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➖St. Louis Fed President urges for negative rates too as “sharper-than-expected slowdown” could materialize
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➖The New York Fed added $104.293 billion in a single day to financial markets on Thursday.
This addition came in two parts, one via overnight repurchase agreement and the other from a 13-day repo operation.
This all started when in September an unexpected rate hike choked the short-term lending, prompting the Federal Reserve to intervene. The Fed’s market operations are aimed at ensuring the financial markets have enough liquidity.
Though these operations go back decades, analysts and market commentators are raising concerns that these additions are large and may not be enough to solve lending problems.
Fed Chair: Nothing really Booming that would Bust
On Thursday Fed Chairman Jerome Powell said the risk of the US economy, which is in its 11th year of expansion, facing a dramatic bust is remote because it is sustainable. Powell told the House of Representatives Budget Committee,
“The US economy is the star economy these days. We're growing at 2%, right in that range, more than any of the other advanced economies are growing. There's no reason that can't continue.”
As for is there any threat to this expansion, Powell said, “There's nothing that's really booming that would want to bust, in other words.”
“It's a pretty sustainable picture.”
On Wednesday, Powell also urged Congress to take action on US debt and the “unsustainable” budget deficit.
“The debt is growing faster than the economy. It's as simple as that,” said Powell in response to a question.