The Fed’s trading desk to increase basis point rate
17 February 2014 New York
Image: Shutterstock
The open market trading desk at the Federal Reserve Bank of New York has been conducting daily, overnight fixed-rate reverse repo operations as part of an operational readiness exercise.
Beginning with the operation to be conducted on 18 February, the desk will increase the fixed rate offered in these operations from three basis points to four basis points. All other terms of the exercise will remain the same.
The operations were announced in a 30 September 2013 statement.
“As an operational readiness exercise, this work is a matter of prudent advance planning by the Federal Reserve,” said a statement.
“These operations do not represent a change in the stance of monetary policy, and no inference should be drawn about the timing of any change in the stance of monetary policy in the future.”
Beginning with the operation to be conducted on 18 February, the desk will increase the fixed rate offered in these operations from three basis points to four basis points. All other terms of the exercise will remain the same.
The operations were announced in a 30 September 2013 statement.
“As an operational readiness exercise, this work is a matter of prudent advance planning by the Federal Reserve,” said a statement.
“These operations do not represent a change in the stance of monetary policy, and no inference should be drawn about the timing of any change in the stance of monetary policy in the future.”
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