Fed to attempt MBS repo to halve $2.1trn balance sheet
The Federal Reserve is preparing to start withdrawing liquidity from the US financial system ahead of the termination of the last financial market assistance programme operated by the central bank, Congress has heard.
Appearing before the House Committee on Financial Services yesterday, Federal Reserve chairman Ben Bernanke confirmed the regulator intends to eventually drain large quantities of cash in the banking system through the use of reverse repurchase agreements.
“To build the capability
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