The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Concerns still roil the money markets after a quiet new year

Calm in the money markets over the new year will not silence growing calls for the Federal Reserve to provide a standing repo facility.


It has been quiet out there in the US dollar money markets; maybe too quiet.

On Wednesday, Patrick Harker, president of the Federal Reserve Bank of Philadelphia, shared some thoughts at a New York conference on monetary policy normalization.

He looked back to the dramatic rise in secured overnight funding rates in September and to the steps the Fed had taken to ensure it had not been repeated, with a particular focus on the year-end just passed.

Carefully laid plans for the New York Fed’s open market trading desk to offer two-week term repo twice a week spanning year-end, to ensure plentiful reserves at a time when banks typically conserve cash to make their quarter-end ratios look good, clearly worked.

The effective fed funds rate maintained a virtually constant level at 1.55%, as it has since October, with repo markets staying calm and the secured overnight financing rate (Sofr) at which banks lend against US Treasury collateral staying within a few basis points of fed funds.


Patrick Harker,
Federal Reserve
Bank of Philadelphia

“Instead of wreaking havoc, the year’s end was a non-event,” Harker reported.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree