Fed Doubles Reverse Repo Counterparty Limit to $160 Billion

“As we previewed back in August when we said that the Fed may soon have to raise reverse repo limits, with usage on the Fed’s facility rising every day, moments after we learned that the Reverse repo hit a new all time high of $1.283 trillion, the Fed announced that it would double its reverse repo counterparty rate from $80 billion to $160 billion as the large counterparties are now hitting the limit on how much repos they can park at the Fed.”

Fed Doubles Reverse Repo Counterparty Limit To $160 Billion | ZeroHedge

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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