FED ENDS TIGHTENING AND SUPPORTS LIQUIDITY RETURN FOR BANKS THROUGH REPO

🔸 The FED has injected 13.5 billion dollars into banks through repo operations, marking the second largest liquidity support in a single day since COVID. The aim is to alleviate short-term capital demand pressures in the banking system.

🔸 The repo operation is when the FED lends money to banks for a very short period, usually overnight, and uses bonds as collateral. The banks commit to repurchase the asset later at a higher price. This is not money pumping as many people think because the money will return to the FED, but it indicates that liquidity in the system is still tightening.#JoinGrowthPointsDrawToWiniPhone17