Federal Reserve conducts 'reverse repos'

Filed under: Press releases, Market matters, Money and Finance Today, Federal Reserve

This post is quite short, yet very important. For the first time, the Fed is conducting "Reverse repos."

Why is this so significant? For the past year the Fed has been doing "repos." A repo is when the Fed steps in and buys Treasury securities. The effect is to create a credit on bank balance sheets and consequently give them more lending power.

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Federal Reserve conducts 'reverse repos' originally appeared on BloggingStocks on Thu, 03 Dec 2009 17:30:00 EST. Please see our terms for use of feeds.

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