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Federal Reserve conducts 'reverse repos'

This post is quite short, yet very important. For the first time, the Fed is conducting "Reverse repos."

Why is this so significant? For the past year the Fed has been doing "repos." A repo is when the Fed steps in and buys Treasury securities. The effect is to create a credit on bank balance sheets and consequently give them more lending power.

Continue reading Federal Reserve conducts 'reverse repos'

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Last updated: May 27, 2012: 06:23 PM

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