According to Odaily Planet Daily, the Federal Reserve accepted a total of US$281.392 billion from 60 counterparties in fixed-rate reverse repurchase operations.
Reverse repurchase means that the Federal Reserve sells securities to financial institutions, withdraws funds from the market, and agrees to buy back these securities at a predetermined price on a future date.
This operation is usually to control the money supply and market interest rates, thereby achieving specific macroeconomic goals. When the economy is overheated or inflationary pressures rise, the Fed may use reverse repurchase operations to reduce liquidity in the market and effectively control short-term interest rates.
