Search Results
Briefing
Bank Resolution and the Fed’s New Standing Repo Facility
In July 2021, the Fed put a new lending program in place: the Standing Repo Facility. The program will likely impact the financial system in multiple ways. One specific area of influence is the process of resolution planning at large banking corporations. How the facility interacts with those plans will depend in part on guidance provided by regulators as resolution planning continues evolving.
Speech
Current Issues in Monetary Policy Implementation
Remarks before the Money Marketeers of New York University, New York City.
Working Paper
Rewiring repo
We develop a model of the repo market with strategic interactions among dealers who compete for funding in a decentralized over-the-counter market and have access to a centrally cleared interdealer market. We show that such “wiring” of the repo market combined with imperfect competition in dealer funding results in market inefficiencies and instability. The model allows us to disentangle supply and demand factors, and we use these factors to estimate supply and demand elasticities. Our estimates suggest that the instability of the market in September 2019 was driven by a large supply ...