On Wednesday, market players demanded almost $ 92 billion when the New York Federal Reserve offered only 75 billion.
The Federal Reserve of New York (Fed) announced that it would inject up to 100 billion dollars (91 billion euros), Thursday, September 26, in the interbank market due to strong demand. On Wednesday, market players demanded almost $ 92 billion when the Fed offered only 75. The day before, the situation was hardly more liquid.
For good measure the Fed's regional branch has also doubled the amount offered on longer-term loans to $ 60 billion, according to a statement. On Friday, the Fed announced several measures to prevent interest rates in this short-term lending market, crucial for banks and large companies, from deviating too much from its key rates currently set within a range of 1 , from 75 to 2.00%. She had announced daily operations until October 10 of 75 billion each.
The New York Fed, which intervened daily last week, was taken by surprise, Monday, September 16, by a burst on rates that have reached up to 10% in the interbank market, 5 times higher than the rates. directors they are supposed to reflect.
Analysts and central bankers explained that the imbalance between supply and demand had been caused by a combination of technical factors including tax deadlines and treasury bill issues.