The New York Federal Reserve announces an increase in the temporary overnight repo operations from $75 billion to $120 billion a day. Another $10 billion increase is announced for term repo operations.
While the Fed Chairman ascertains that this is not ‘quantitative easing’ but organic growth measures, experts are growing increasingly apprehensive of another recession.
Sven Henrich, the founder of Northman Trader, tweeted,
I’ll go out on a limb here, but a financial system that requires over $100B of liquidity injections every day, temporary, permanent or otherwise, has major issues.