5 years ago

Deutsche Bank, the Fed will push the repurchase mechanism bank as soon as possible to obtain funds at a flat cost.

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Deutsche Bank

Deutsche Bank strategist Steven Zeng issued a report, expecting the Fed to introduce new measures as soon as possible next year, allowing banks to use the national debt and other securities as collateral to lend to the Federal Reserve.

Steven Zeng pointed out that the fixed-rate repurchase mechanism has enabled banks to have a cheaper supply channel in the event of a major reversal in the money market. He expects the Fed to test the effect of the policy later in the year.

The Fed has been discussing the pros and cons of setting up a repurchase mechanism, but it has not been finalized. He believes that the Fed and financial markets can benefit from the repurchase policy.

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