The Federal Reserve, which has pumped trillions in emergency funding into United States financial markets to stem the damage from the Covid-19 pandemic, is expected on Wednesday to reiterate its promise to do whatever it takes to support the world’s largest economy.
The Federal Reserve’s efforts to boost reserves in the banking system helped to calm markets and make the much anticipated year-end period a non-event, and officials are still debating the details of a potential standing repo facility, a top Fed official said on Wednesday.
The interest rate on United States overnight repurchase agreements ticked higher early Tuesday in advance of two operations to be conducted by the New York Federal Reserve which may add up to $105 billion in temporary cash in the U.S. banking system.
On Wednesday the Federal Reserve’s policy twist might seem just what the White House ordered, with a hold put on what US President Donald Trump termed “loco” interest rate hikes, and an openness to ending the monthly runoff of up to $50 billion from the U.S. central bank’s balance sheet.
Yuan of China will breach the 7 per dollar rate within the next six months, according to about 60 percent of FX strategists, who also said authorities would continue to exert control over the currency in 2019.