Wall Street companies parked as the clock ticked off the debt cap standoffs in Washington. Record $ 1.605 trillion Overnight cash in the Federal Reserve’s popular reverse repo program.
While Senate passed bill Thursday afternoon To extend government spending until December 3 and avoid closure, the bill is currently seeking a vote in the House of Representatives and is expected to approve the bill, but the federal debt cap has not yet been lifted. Hmm.
When the drama was staged at Capitol Hill, a total of 92 companies participated in the Fed’s Thursday reverse repo operation. The program that ran out of the Federal Reserve Bank in New York Banks, government support agencies, and some of the world’s largest investment companiesA short-term shelter for parking cash while earning 5 basis points overnight.
In early September, the Fed Double the maximum pledge that each counterparty can pledge $ 160 billion each for overnight facilities.I have a program Has grown in popularity in recent months As a trillion dollar worth of fiscal and financial stimulus through the US economy and financial markets.
The recent increase in demand was not unexpected, Wall Street analysts predict early August Treasury bill market shrinks, typically volatile year-end periods, and a surge in Washington over government spending.
The last check dropped about 300 points.
Federal Reserve Reverse Repo Program Sees Record $ 1.6 Trillion Demand on Thursday
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