Federal Reserve Bank of New York officials: The dynamics between Trump and Capitol Hill regarding the handling of the debt ceiling may disrupt the money market

Wallstreetcn
2025.03.05 23:26

Roberto Perli, Head of Securities and Asset Management at the Federal Reserve Bank of New York: A (potential) debt ceiling solution may threaten market liquidity.

The dynamics of the (Trump administration and Capitol Hill's handling of the) debt ceiling may stir the money market.

The current debt ceiling impasse may threaten the process of the Federal Reserve's balance sheet reduction that has been ongoing since June 2022.

The Standing Repo Facility (SRF) remains significant for controlling interest rates.

At the end of the third quarter, the Federal Reserve may increase operations in the morning (New York time).

Volatility indicates that the repo market is returning to normal conditions.

Pressure in the repo market has been gradually intensifying

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