Diamond News Archives

Just ahead of an emergency Federal Reserve rate cut, big banks’ demand for Fed temporary liquidity shot higher and exceeded what the central bank was willing to provide on Tuesday, as financial markets remained deeply unsettled amid big worries about the coronavirus situation’s impact on the global economy.

But even as the Fed added substantial amounts of money to the market via two repurchase-agreement operations, or repos, its lever to affect the performance of the economy and the focus of its monetary-policy actions, the... ...