Fed Insider Nick Timiraos Reports: Bessent Says Fed's FIMA Repo Facility for Currency Intervention is a Routine Tool, Upsizing $60 Billion Cap is "Reasonable"
According to Nick Timiraos, Bessent stated on CNBC on Tuesday that the Fed's FIMA repo facility, when used for currency intervention, is a routine tool applied as intended. Bessent explained that the Fed's lending programs exist to "protect the U.S. economy and to keep any volatility offshore." He noted that the $60 billion cap on the facility dates back to 2020 when the bond market was smaller, making an increase in the cap "reasonable." Bessent described FIMA as a "completely secure lending facility," substantively similar to a swap line, and designed for such occasions.
Source:X@NickTimiraos · Source Link
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