Open Market Operations
The Open Market Operations
| OPEN MARKET OPERATIONS |
|---|
| Balance Sheet |
| Disbursed*: |
| Current outstanding: |
| Public Funds |
| Maximum at-risk: $125B |
| Current at-risk: |
* See the methodology and glossary for definitions of "disbursed," etc.
Contents
Funding agency and aid type
The funding agency is the Federal Reserve.
Loans, interest rate change mechanism.
Who benefits
Banks
Background
Via Prins:
“OMOs are the principal tool of monetary policy, comprising purchases and sales of U.S. Government and Federal agency securities that are used to affect bank reserves and, in turn, the cost and availability of money and credit in the U.S. economy. The FOMC specifies a short-term objective for the OMOs. These policy targets change from time to time, but the current objective of the FOMC is to stabilize the federal funds rate around a target interest rate. The FOMC instructs the Federal Reserve Bank of New York (“FRBNY”) to engage in OMOs as appropriate to keep the federal funds rate near the target.”
Notes
Prins: “In September 2008, the Fed injected $125 billion into the market by purchasing securities and repurchase agreements, or repos, in which primary dealers borrow cash from the fed.” [2]
Articles and resources
Related SourceWatch articles
References
External resources
External articles
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