New York Fed President John Williams met with Wall Street banks to discuss a key lending facility amid signs of tighter market liquidity. The meeting with primary trading counterparties aimed to ensure the facility remains effective for rate control. The New York Fed did not immediately respond to requests for comment on the matter. The meeting took place during the Fed’s annual Treasury market conference. The standing repo facility allows eligible financial firms to quickly turn bonds into cash, acting as a shock absorber for market liquidity needs. Despite its adoption in 2021, the tool had mostly gone unused until late October. Some Fed officials were perplexed by the limited usage of the facility, with firms opting to borrow from markets at higher rates instead.

Read more at Yahoo Finance.: New York Fed met with banks over key lending facility, FT reports