The Federal Reserve has announced that it will conduct a series of daily monetary operations starting April 25, 2024. These operations are aimed at maintaining the federal funds rate within the target range set by the Federal Open Market Committee (FOMC).
A statement from the Federal Reserve outlines the scope and objectives of these operations. "The Desk plans to conduct overnight reverse repurchase agreement operations each day," said the statement. This approach is intended to provide a floor for short-term interest rates.
Additionally, the Fed will continue its Treasury securities lending program to support the functioning of financial markets. "These measures help ensure that ample reserves remain in the banking system," noted another part of the statement.
These efforts are part of ongoing strategies to stabilize and manage liquidity in U.S. financial markets.