The Fed Turns on the Pump - a podcast by American Pastors Network

Worries grow of the Federal Reserve’s efforts to fix funding issues. The New York Fed recently said it was raising its minimum offerings for overnight repos to $120 billion from a minimum of $75 billion, with the next two-term repo operation increased to $45 billion from a minimum of $35 billion. What is the Federal Reserve offering? To who are they offering this?

The term ‘overnight repos’ has been brought up in this discussion. According to a recent Wall Street Journal article, The Federal Reserve Bank of NY injected $99.9 Billion in temporary liquidity and $7.5 Billion in permanent reserves into the financial markets. What is the ‘repo’ market? Why would it demand such large infusions of money?Is this a healthy process?

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