All morning long:
Thursday December 16, 9:33 am Eastern Time
Alert: Fed Says Adds Reserves Via 14-day Fixed System Repos, Tri-party Settlement (options, currency)
Thursday December 16, 9:33 am Eastern Time
Fed seen adding reserves via overnight or fixed RPs
NEW YORK, Dec 16 (Reuters) - The Federal Reserve is expected to add reserves to the
banking system on Thursday through overnight or fixed-system repurchase agreements,
analysts said.
''I think they're going to err on the side of oversupply and keep adding,'' said Kim Rupert,
economist at Standard & Poor's MMS.
But analysts were cautious on Thursday trying to predict what kind of form that adding
would take.
''They could do an overnight, they could do a term, they could pre-announce some other operation too ... anything is possible,''
said Carol Stone, senior economist at Nomura Securities International. ''But I do think that they will do something.''
On Wednesday, the Fed said it added reserves through five-day forward repos and a separate overnight system repurchase agreements operation, on top of 21-day fixed-system repos pre-announced on Tuesday.
The Fed also made an outright purchase of Treasury securities on Wednesday. |
