? about: Fed adds reserves via 5-day system repurchases
Hi All
I read the Currency News Archive in Yahoo and every few days the next Sort of Note is posted. I was wondering if somebody could explain the importance of this type of FR action. In particular the paragraph hilighted in blue.
Thank You
NEW YORK, Dec 23 (Reuters) - The Federal Reserve said on Friday it had added temporary reserves to the U.S. banking system through five-day system repurchase agreements. The benchmark federal funds rate last traded at 4.25 percent, the Fed's current target for the overnight lending rate.
T o execute monetary policy, short-term repurchase and reverse repurchase agreements are utilized to temporarily influence the size of the Federal Reserve System's portfolio and affect day-to-day trading at the federal funds market.
Temporary Open Market Operations
http://www.ny.frb.org/images/spacer.gif Temporary Open Market Operations for December 23, 2005
Last Updated: December 23, 2005 9:53 AM
Number of Operations Today: 1
http://www.ny.frb.org/images/spacer.gif Deal Date: Friday, December 23, 2005
Delivery Date: Friday, December 23, 2005
Maturity Date: Wednesday, December 28, 2005
Type of Operation1: Repo
Settlement: Same Day
Term of Operation2: 5 Days
Operation Close Time: 09:30 AM