New York Fed accepts $0.002 bln of $0.002 bln submitted to standing repo facility on June 12

New York Fed accepts $0.002 bln of $0.002 bln submitted to standing repo facility on June 12

The Federal Reserve Bank of New York (New York Fed) accepted $0.002 billion of the $0.002 billion submitted to its standing repo facility on June 12. This is part of the New York Fed's ongoing efforts to manage short-term funding conditions in the financial system.

The standing repo facility provides short-term funding to banks and other financial institutions. The facility allows participants to borrow cash against a wide range of collateral, including U.S. Treasury securities. The New York Fed uses this facility to help maintain smooth functioning of the financial markets and ensure adequate liquidity.

The acceptance of $0.002 billion at the standing repo facility follows a period of high uncertainty over the future path of tariffs and their impact on inflation. The New York Fed's recent surveys have indicated that businesses and consumers are expecting moderating price gains for various goods and services [2]. This suggests that the uncertainty surrounding trade policies may be contributing to a more cautious approach to borrowing and lending.

Despite the recent moderation in inflation expectations, the New York Fed has noted that inflation remains above the U.S. central bank's 2% target. The Fed is expected to leave its benchmark interest rate steady at the end of its June 17-18 policy meeting [3].

The New York Fed's acceptance of $0.002 billion at the standing repo facility is a reflection of the ongoing efforts to manage short-term funding conditions and ensure stability in the financial markets. As the economy continues to evolve, the New York Fed will likely continue to monitor the situation closely and adjust its policies as needed.

References:
[1] https://finance.yahoo.com/news/consumers-paying-costs-trumps-tariffs-100013837.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3SC0KR:0-us-inflation-expectations-ease-in-may-new-york-fed-survey-shows/
[3] https://money.usnews.com/investing/news/articles/2025-06-09/ny-fed-finds-moderating-inflation-expectations-in-may