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Fed adds to toll kit

By   || March 8, 2010 at 15:03 GMT
|| 1 comment || Add comment

The Fed has announced  it will expand the counterparties with which it can conduct reverse repos.

What are reverse repos? They are a monetary policy tool used to drain liquidity from the banking system.

Just one more of the minor policy shifts undertaken by the Fed to implement its exit strategy when the time comes. The time has not come yet, however.

EUR/USD is easing after the news, now at 1.3665.

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One Response to “Fed adds to toll kit”

  1. alfred on March 8th, 2010 15:12 GMT

    The Feds a real bunch of crafty little diggers!

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