The US Federal Reserve has been boosting liquidity supposedly since mid-September since a spike in the overnight lending rate shocked the financial system when the short-term rate spiked to 10% from 2% overnight in mid-September.
The Fed to start injecting capital through overnight market repurchase agreement operations “repos” on September 17. It’s a couple hundred billion dollars…
The Fed also began monthly purchases of $60 billion in Treasury bills on October 15 to supposedly calm money markets.
So, the Fed is providing liquidity to markets again in the form of QE, they just aren’t labeling it as such. And… its trend is up.
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