Maybe I'll expand on this commentary at some point but for now I'll just repeat an industry quote of which I am fond: 'You cannot solve a capital problem with liquidity.' FRB has no business being in the repo market. Of course, the FRB's entire existence is a sham. FRB's balance sheet back over $4T!
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"Since September, in fact, the Fed has done hundreds of billions of dollars in repos and continues to buy back $60 billion in Treasury bills each month."
https://nypost.com/2019/12/11/federal-reserve-gets-in-repo-biz-but-loses-track-of-cash/