Fed Discusses Potential Cut to Reverse-Repo Rate for Benchmark Control

Reported about 3 hours ago

Federal Reserve officials are contemplating a cut to the overnight reverse repurchase agreement (RRP) rate to align with the federal funds rate target range's lower limit. As recent RRP balances have decreased significantly since late 2022, policymakers believe adjusting the RRP rate may alleviate downward pressure on money market rates, particularly at month-end or year-end. The current RRP rate is 4.55%, slightly above the federal funds target range of 4.5% to 4.75%.

Source: YAHOO

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