🇺🇸⚠️ There is no tension in the banking system via EUA on the radar. In recent days, the Federal Reserve decided to inject amounts of dollars to provide liquidity for further purchases and overnight “repo agreements,” so that the Fed obtains general titles and mortgage-backed securities as collateral by depositing money directly for banks. 🏦
The latest operations are the newest successful methods, with transactions ranging from $24 to $25 billion in November, followed by new injections—about $9 billion and then more than $13.5 billion. 📊
It’s not a very long chart; it shows usage spikes during moments of severe stress, such as the 2019 short-term funding market crisis and the liquidity shock during the pandemic. 👀
In practice, the summary indicates that there are institutions struggling to manage their necessary daily memos, and the Federal Reserve acts as the “bank of banks” to prevent liquidity failures in the system. This does not automatically mean there is a systemic crisis, but it does point to increased fragility and requires vigilant monitoring to track credit, risk curves, and vulnerabilities. 🌐
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🇺🇸⚠️ There is no tension in the banking system via EUA on the radar. In recent days, the Federal Reserve decided to inject amounts of dollars to provide liquidity for further purchases and overnight “repo agreements,” so that the Fed obtains general titles and mortgage-backed securities as collateral by depositing money directly for banks. 🏦
The latest operations are the newest successful methods, with transactions ranging from $24 to $25 billion in November, followed by new injections—about $9 billion and then more than $13.5 billion. 📊
It’s not a very long chart; it shows usage spikes during moments of severe stress, such as the 2019 short-term funding market crisis and the liquidity shock during the pandemic. 👀
In practice, the summary indicates that there are institutions struggling to manage their necessary daily memos, and the Federal Reserve acts as the “bank of banks” to prevent liquidity failures in the system. This does not automatically mean there is a systemic crisis, but it does point to increased fragility and requires vigilant monitoring to track credit, risk curves, and vulnerabilities. 🌐
These factors can foreshadow changes in monetary policy, by recognizing banking risks and seeking protection from alternatives when things worsen. 🔥
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