The Fed considers re-establishing 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 interest rate provided for the overnight reverse repurchase agreements. Staff reviewed the developments in the usage of the overnight reverse repurchase agreement tool. They pointed out that lowering the interest rate provided for the 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 potentially exert downward pressure on other money market rates. The second consideration focuses on the potential impact of the federal debt ceiling that may be restored in 2025 on the liabilities of the Federal Reserve. Staff indicated that these significant changes could obscure the impact of the ongoing depletion of the balance sheet on the money market conditions and pose challenges in assessing the reserve situation. #BTC☀ #ETH🔥🔥🔥🔥 #币圈段子 #区块链超话