Wall Street Questions Fed's Intent Behind Potential RRP Rate Cut

Reported 1 day ago

Wall Street is expressing skepticism over the Federal Reserve's potential decision to lower the offering rate on its overnight reverse repo facility (RRP) by 5 basis points. While some strategists view this adjustment as a technical move aimed at aligning the RRP rate with the bottom of the federal funds target range, others, including prominent banks like Bank of America and Citigroup, question the necessity and timing of such a change, especially given the current balances held at the RRP facility.

Source: YAHOO

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