Fed Acts to Calm Money Markets

The transcript discusses the Federal Reserve's challenges in controlling short-term interest rates, highlighting market concerns about the Fed's credibility. It covers the New York Fed's efforts to regain control through repo operations and the potential establishment of a standing repo facility. The discussion also delves into the reasons behind the funding squeeze, including structural issues and seasonality, and examines the impact of increased Treasury supply and post-crisis regulatory structures on the market.

How does the current funding squeeze relate to seasonal and structural factors?

What long-term solutions could alleviate the pressures in the market?