Fed watchers are thinking that the Federal Reserve will tweak interest rate policy mechanisms to maintain financial stability long before it changes the actual target rate. These adjustments would include moving the rate paid on interest on excess reserves (IOER) or the rates paid on Temporary Open Market Operations (TOMO) or the Reverse Repo Facility (RRP). Repo market participants have their own views on what would matter most.
This content requires registration. Get access today by signing up here.