JPMorgan Warns U.S. Money-Market Stress to Get Much Worse
This is the repo market stress we heard so much about in September. The stressors remain because the real underlying cause, which nobody is talking about, is the US government’s explosion of deficit spending.
(From Bloomberg)JPMorgan Chase & Co. says the money-market stress that sent short-term borrowing rates surging last month is likely to get much worse despite the Federal Reserve’s attempts to inject billions of dollars into the financial system. The Fed has offered overnight loans and started buying up to $60 billion of U.S. Treasury bills a month in an effort to ease pressure in the vast repo market, where banks typically lend their assets in exchange for short-term financing.
Reprinted from: https://www.ac2news.com/2019/10/jpmorgan-warns-u-s-money-market-stress-to-get-much-worse/
