From Yahoo Finance: 2025-05-22 15:13:00

The Federal Reserve Bank of New York is encouraging the use of the Standing Repo Facility (SRF) to support monetary policy and market functioning, says official Roberto Perli. The SRF, launched in 2021, provides quick cash in exchange for Treasury securities to boost liquidity. The Fed plans to expand morning SRF operations soon.

Perli, responsible for implementing monetary policy, notes the ongoing contraction of the Fed’s balance sheet, shedding over $2 trillion in bonds. As reserves decrease, there is expected upward pressure on money market rates. The rise in repo market activity signals the need for increased use of the SRF to manage liquidity needs.



Read more at Yahoo Finance: Fed’s Perli encourages firms’ use of Standing Repo Facility