Federal Reserve Official: Standing Repo Facility Morning Routine Operation Coming Soon

BlockBeats News, May 9th. On Friday, a Federal Reserve official responsible for executing monetary policy said that the market responded well to last month's market pressures as the Fed took steps to strengthen a key liquidity tool. Roberto Perli, manager of the Federal Reserve System Open Market Account, said: "Although liquidity in the U.S. Treasury cash market tightened in early April, these markets continued to function smoothly, in part because the funding liquidity in the U.S. Treasury repurchase market is elastic." The market performed well during this pressure period following the Trump administration's announcement of large-scale trade tariffs, but Perli stated that this experience once again demonstrates the need for the Fed to further explore how to provide rapid liquidity to the market. Perli stated that the Standing Repo Facility (SRF) will conduct operations in the morning and afternoon in the "near future." He noted that "these early settlement auctions, along with the current afternoon auction, will enhance the effectiveness of the SRF as a tool for monetary policy implementation and market operations." (FXStreet)