NY Fed to pump $75 bn into money markets daily through Oct 10

The New York Federal Reserve Bank said
Friday it will inject billions into the US financial plumbing daily for the
next three weeks in an effort to prevent a spike in short-term interest
rates.

The Fed will offer up to $75 billion daily in repurchase agreements —
exchanging secure assets for cash for very short periods — through October
10, it said in a statement.

In addition, it will offer three 14-day “repo” operations of at least $30
billion each.

Banks have struggled in recent days to find the cash needed to meet reserve
requirements which has pushed up short-term borrowing rates.