NY Fed to pump $75 bn into money markets daily through Oct 10

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The New York Federal Reserve Bank said Friday it will inject billions into the US financial plumbing daily for the next three weeks in an effort to prevent a spike in short-term interest
rates.

The Fed will offer up to $75 billion daily in repurchase agreements — exchanging secure assets for cash for very short periods — through October 10, it said in a statement.

In addition, it will offer three 14-day “repo” operations of at least $30 billion each.

Banks have struggled in recent days to find the cash needed to meet reserve requirements which has pushed up short-term borrowing rates.

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