Tags: US | Fed | Reverse | Repurchase | Deals

Fed to Begin Pulling Economic Support from Market

Monday, 08 Mar 2010 11:20 AM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink

The Federal Reserve is beginning a program to drain some of the unprecedented liquidity it added to markets during the credit crisis.

The Federal Reserve Bank of New York said Monday it will begin conducting reverse repurchase agreements. That's when the Fed sells securities from its portfolio with an agreement to buy them back later.

The Fed launched dozens of programs to add liquidity to credit markets during the peak of the credit crisis in late 2008 after the market came to a standstill. The Fed is beginning to withdraw the measures now that the crisis has passed.

The program is open to primary dealers as well as domestic money market mutual funds.

The Fed first announced it would launch the reverse repurchase program on Oct. 19.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

John Kerry: 'No Problem' With 'Thoughtful' Palestinian Bid

Wednesday, 17 Dec 2014 16:52 PM

The United States has no problem with Palestinians putting a draft resolution to the UN aiming to boost their hopes fo . . .

Donald Trump on 2016 Run: 'I Am Considering It Very Strongly'

Wednesday, 17 Dec 2014 16:46 PM

Donald Trump is "very strongly" mulling a bid for the White House in 2016, and is inclined to throw his hat into the rin . . .

Dick Morris: Hillary's Biggest Fear Is Elizabeth Warren

Wednesday, 17 Dec 2014 16:06 PM

Welcome to 2008. It's back to the future. The very same elements that toppled Hillary Clinton's "inevitable" nomination  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved