One hurdle to a possible fix for recent volatility in the short-term cash markets: hedge funds.
As part of its stated goal of reducing repo-market volatility, the Federal Reserve is pondering lending directly to hedge funds instead of via the sponsored repo process. However, there are concerns that such a move could create political problems for the Fed, especially if it is forced to bail out a hedge fund.
The full article is available at https://www.wsj.com/articles/hedge-funds-could-make-one-potential-fed-repo-market-fix-hard-to-stomach-11578997801