Fed funds rate sets at the top of the range at 2.25%

Short-term funding pressures are in focus

Repo rates hit 10% overnight on a dollar funding shortage that's probably due to the combination of corporate debt issuance and quarterly tax payments.

There was some speculation the Fed would miss its target of 2.00-2.25% but they managed to hold the top line at 2.25%, up 11 basis points from yesterday.

There is some talk about IOER in tomorrow's FOMC decision in order to get the upper hand on short-term lending with more stress expected around year end.

Here's ZeroHedge on the funding squeeze.