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Open original source ↗A ‘Routine Tool’ 🛠️…
Just another ‘Routine Tool’ 🛠️, like those that will be rolled out early next year to backstop ‘the coming Treasury Market Crises.’ (See Hank Paulson) https://t.co/WO2dQ1rR0C
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Bessent cast the Fed's FIMA repo facility being used for currency intervention as a routine tool being applied as intended. On CNBC on Tuesday, he said the Fed's lending programs exist "to protect the U.S. economy and to keep any volatility offshore." The $60 billion cap dates to 2020, when the bond market was smaller, so upsizing it would be "reasonable." He called FIMA "a completely secure lending facility," no different in substance from a swap line, and said it "was set up for occasions just like this."
NickTimiraos ↗