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Fed injections are no lasting solution for ‘broken’ repo market — experts

Banks prefer to keep money at Fed instead of lending to other banks

Fed injections are no lasting solution for ‘broken’ repo market — experts
Photo: Getty Images

The Federal Reserve’s ongoing efforts to shore up the short-term “repo” lending markets have begun to rattle some market experts.

The New York Federal Reserve has spent hundreds of billions of dollars to keep credit flowing through short term money markets since mid-September when a shortage of liquidity caused a spike in overnight borrowing rates.

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