The Federal Reserve injected $50.35 billion into financial markets through its Standing Repo Facility on Friday, setting a record high amid increased month-end collateral demands. This move coincided with a $51.8 billion intake via the reverse repo facility, raising concerns about potential liquidity stress in the system.
Analysts are drawing parallels to the 2019 repo crisis, despite the Fed's assurances of 'ample reserves.' The injection comes as the market faces rising deficits and tightening monetary policy, prompting fears of underlying financial instability.
Federal Reserve Injects $50.35 Billion into Markets Amid Liquidity Concerns
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