NY Fed Removes RRP Counterparties
The Federal Reserve Bank of New York posted a statement entitled, "Reverse repo counterparties list updated." They tell us, "The following are no longer reverse repo counterparties, effective December 18: Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., "Rabobank Nederland", New York Branch; HSBC Bank USA, National Association; Northern Funds - Money Market Fund; Svenska Handelsbanken AB (publ) New York Branch; and U.S. Bancorp Asset Management - First American Prime Obligations Fund." In other news, Federated Investors' Head of Govt MMFs, Susan Hill writes, "Fed Watch: Another December, another hike." She explains, "For the third December in a row, and amid virtual certainty for policy action, the Federal Reserve voted to raise the fed funds target range by 25 basis points at today's Federal Open Market Committee (FOMC) meeting. This time feels different, though. This time the Fed is no longer moving in spite of the surrounding data, but because of it. And unlike with previous actions, this time the market is a believer in the Fed in the magnitude of future policy moves." Federated's update adds, "The recent and expected strong economic performance kept the Fed's dot plot projections on track for three additional policy moves in 2018 and two in 2019 and nudged up its projections for 2020 to reflect an additional rate hike."
