Fed's Logan Says Not Surprised There's Some Money Market Volatility; Fed Should Tolerate Some Money Market Volatility; Expects Money Markets Close To Or Just Above Interest On Reserves Rate; Over Time Wants 'Negligible' Balances In Reverse Repo Facility; Fed Could Change Reverse Repo Rate If Cash Doesn't Leave Facility; Selling Fed Owned Mortgage Bonds Not Current Issue
Portfolio Pulse from Benzinga Newsdesk
The Federal Reserve's Logan discusses the current state of money market volatility, indicating that some volatility is expected and should be tolerated. Logan expects money markets to be close to or just above the interest on reserves rate and aims for negligible balances in the reverse repo facility over time. The Fed may adjust the reverse repo rate if cash remains in the facility, but selling Fed-owned mortgage bonds is not currently a concern.
October 21, 2024 | 12:57 pm
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The Federal Reserve's stance on tolerating money market volatility and potential adjustments to the reverse repo rate could influence market stability and investor sentiment, impacting SPY.
The SPY ETF, which tracks the S&P 500, could be influenced by the Federal Reserve's approach to money market volatility and potential changes in the reverse repo rate. However, the direct impact is uncertain, leading to a neutral short-term outlook.
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