Reported 3 days ago
The Federal Reserve has reduced the rate on its overnight reverse repurchase agreement (RRP) facility by 5 basis points, marking the first adjustment since 2021. This change aligns the RRP rate with the new lower bound of the Fed funds rate target range of 4.25% to 4.50%. As financial institutions currently hold approximately $132 billion at the RRP facility, this adjustment is expected to influence liquidity in US financial markets and affect money market rates.
Source: YAHOO