Reported about 18 hours ago
As the Federal Reserve reduces its balance sheet by over $2 trillion since mid-2022, it grapples with persistent issues of liquidity measurements and market volatility reminiscent of the 2019 crisis. Despite improvements, Wall Street strategists anticipate an end to quantitative tightening amid unclear reserve scarcity levels. The introduction of the Standing Repo Facility has provided an avenue for liquidity support, but concerns linger regarding its infrequent use and the associated costs for dealers, reflecting a complex interplay of factors affecting the Fed's policy environment.
Source: YAHOO