The Fed’s Latest Tool: A Standing Repo Facility

Afonso, Gara; Logan, Lorie; Martin, Antoine; Riordan, Will; Zobel, Patricia

Discussion Paper

The Fed’s Latest Tool: A Standing Repo Facility

Abstract: In July 2021, the Federal Open Market Committee announced a new tool for monetary policy implementation: a domestic standing repurchase agreement facility. In the last post of this series, we explain what this new tool is and how it will support the effective implementation of monetary policy in the floor system through which the Fed implements policy.

Keywords: standing repo facility; monetary policy implementation;

JEL Classification: E52; E58;