"These facilities will serve as backstops in money markets to support the effective implementation of monetary policy and smooth market functioning," the Fed said in a statement after the end of its latest two-day policy meeting.
WASHINGTON: The Federal Reserve announced on Wednesday it will establish separate domestic and international standing repo facilities to backstop money markets during times of stress.
The domestic standing repo facility, or SRF, will conduct daily overnight repo operations against Treasury securities, agency debt securities and agency mortgage-backed securities.
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