May 31, 2021
The Federal Reserve this week set a record participating in the Overnight Reverse Repo Market. Previously in 2019 they had to enter the Overnight Repo Market as annualized rates soared. So, what are Reverse Repos? What are Repos? Why is the Fed trying to control interest rates by doing market operations in the Reverse Repo Market?
What is the Reverse Repos?
What are Repos?
What is the Overnight Repo Market and Overnight Reverse Repo Market ON RRP
What is the annualized repo rate?
How to calculate what the repo rates are?
How do collateralized repo transactions work?
Fed Funds rate
Federal Reserve IOER Interest on Excess Reserves
Mentioned in this Episode:
New York Fed Overnight Reverse Repos https://www.newyorkfed.org/markets/domestic-market-operations/monetary-policy-implementation/repo-reverse-repo-agreements
Financial Times FT article on reverse repo Fed intervention https://www.ft.com/content/cdec7f2e-6129-412c-b118-8906a2a0f92f
Derek Moore book Broken Pie Chart https://amzn.to/2RUP4sy