The Federal Reserve (FED) officials: Routine operation of the standing repo facility is coming soon in the morning.

On May 9, the Federal Reserve’s official in charge of monetary policy enforcement said on Friday that the market had responded well to market pressures last month as the Federal Reserve took steps to strengthen a key liquidity tool. Roberto Perli, open market account manager at the Federal Reserve System, said: “Although liquidity in the Treasury cash markets became tight in early April, these markets continue to function normally, in part due to the resilient liquidity of the Treasury repo market.” Markets have performed well during this period of stress following the Trump administration’s announcement of massive trade tariffs, but Perry said the experience has once again demonstrated the need for the Fed to further explore how to provide fast liquidity to the market. Perry said the Standing Repo Facility (SRF) will operate in the morning and afternoon “in the near future.” “These early settlement auctions, together with the current afternoon auctions, will enhance the effectiveness of the SRF as a tool for monetary policy implementation and market functioning,” he noted. ( gold ten )