The Federal Reserve considers reestablishing the overnight reverse repurchase rate as the lower bound of the benchmark interest rate

On November 27, the minutes of the Federal Reserve meeting showed that staff provided an update to the committee on two considerations regarding recent balance sheet management. The first consideration focuses on the possibility of a technical adjustment to the rate offered on overnight reverse repurchase agreements, with staff reviewing the developments in the usage of this tool. Staff pointed out that lowering the rate offered on overnight reverse repurchase agreements by 5 basis points would align this rate with the lower bound of the federal funds rate target range and could exert some downward pressure on other money market rates. The second consideration focuses on the potential impact of the federal debt ceiling, which may be reinstated in 2025, on the liabilities of the Federal Reserve. Staff noted that these significant changes could obscure the impact of the ongoing balance sheet runoff on money market conditions and pose challenges in assessing reserve levels. #BTC☀ #ETH🔥🔥🔥🔥 #币圈段子 #区块链超话