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IPFS News Link • Federal Reserve

Fed to step up cash injections for banks to guard against market pressure

• https://www.cnbc.com, Jeff Cox

As part of its continuing efforts to make sure the funding, or repo, markets are working properly, the central bank said it will up the amount it offers in overnight operations from $100 billion to $150 billion through Thursday. 

In addition, it will increase the two-week repo operation offerings from at least $20 billion to at least $45 billion.

Repo operations involve banks posting high-quality collateral like Treasurys in exchange for operating cash.

The moves come amid market tumult on Wall Street that has seen Treasury yields hit record lows amid cascading oil prices and a falling stock market.

In its announcement, the Fed said the move is "intended to ensure that the supply of reserves remains ample and to mitigate the risk of money market pressures that could adversely affect policy implementation."

However, the measure was met with immediate skepticism.