Category Financial Policy

Liquidity Concerns and the Fed’s Expanding Role in the Repo Market

Kim Wilson, MPP Staff Writer, Brief Policy Perspectives Since Sept. 2019, financial markets reporting has covered turmoil in the repo market. Not to be confused with cars being repossessed for nonpayment, the repo market refers to exchanges of reserves that fund day-to-day financial operations. Short for repurchase agreement, a “repo” is a short-term, collateralized loan that banks and other […]

Let’s Get Real: Perspectives on the Fed’s Real-Time Payment Processing Initiative

Kim Wilson, MPP Staff Writer, Brief Policy Perspectives The Federal Reserve Board of Governors recently announced plans to develop a real-time gross settlement (RTGS) system. FedNow ServiceSM will facilitate the instantaneous transfer of funds between financial institutions, businesses, and individuals. Currently, the process of transferring funds from an originator to a recipient can take several days, leaving consumers hanging […]