Fed Preps Second $75 Billion Blast With Repo Market Still On Edge
- The central bank will try again Wednesday to restore calm
- ‘There isn’t enough liquidity,’ according to ex-Fed economist
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It had been more than a decade since Federal Reserve traders jumped into U.S. money markets to inject cash. And they seemed to get the reaction they wanted Tuesday morning, instantaneously driving down key short-term rates that had spiked to as high as 10% and threatened to muck up everything from Treasury bond trading to lending to companies and consumers.
But the move didn’t last long.