Federal Reserve's Additional Repo Operations

(Reuters) – The Federal Reserve Bank of New York announced plans to add extra operations of its standing repo facility covering the end of the calendar year into early January.

Details of the Operations

• Additional Operation Time: In addition to the daily SRF operation occurring from 1:30 p.m. to 1:45 p.m., a new operation will run from 8:15 a.m. to 8:30 a.m.
• Date Range: This additional operation will take place daily from December 30 through January 3, 2025.
• Aggregate Operation Limit: A limit of $500 billion will apply to the combined daily operations.

Purpose

The New York Fed stated that these additional morning operations are designed as technical exercises to enhance the Federal Reserve’s understanding of how SRF operation times can help with effective policy implementation and market functioning during expected money market pressures.