Overview: Fri, July 19

Daily Agenda

Time Indicator/Event Comment
10:40Williams (FOMC voter)
On monetary policy
12:45Bostic (FOMC voter)
Delivers closing remarks at conference

US Economy

Federal Reserve and the Overnight Market

This Week's MMO

  • MMO for July 15, 2024


    ON RRP volume has been stickier than we would have expected in the face of rising triparty repo rates this summer.  We doubt that money funds will have a persistent, structural demand for Fed RRP balances over the long run, but intraday liquidity considerations are creating short-term incentives to allow cash to spill over into the Fed’s facility at present.  That demand seems likely to dry up over time as the Fed continues to normalize its balance sheet.  As an aside, we also discuss the (admittedly speculative) possibility that the Fed might at some point adopt BNY Mellon’s new early-morning triparty unwind option for its own daily RRP operations.

MMO Analysis