Fed Could Have Acted Faster on Repo Facility: Bill Dudley

The video discusses recent events affecting repo rates, including corporate tax payments and Treasury auctions, which led to a temporary rise in the federal funds rate. It explores structural issues like the shrinking Fed balance sheet and reserve demand, and how these impact market trust. The Fed's response to these events is analyzed, with a focus on current market status and potential future strategies, such as balance sheet growth and introducing a standing repo facility.

What was the response of the Federal Reserve to the upward pressure on short-term rates?

What concerns did the audience have regarding the balance sheets of the ECB, BOJ, and Fed?

What potential actions did the Federal Reserve consider to manage upward pressure on rates?