Gara Afonso, Lorie Logan, Antoine Martin, William Riordan, and Patricia Zobel
Daily take-up at the overnight reverse repo facility increased from less than one billion dollars in early March 2021 to well over a trillion dollars five months later. In this second post of the series, the authors take a closer look at this important tool in the Federal Reserve’s monetary policy implementation framework and discuss the factors behind the recent increase in volume.
The full article is available at https://libertystreeteconomics.newyorkfed.org/2022/01/how-the-feds-overnight-reverse-repo-facility-works/