Financials Jun 11, 2021 12:55 AM (GMT+8) · EqualOcean
Teresa Ho, Alex roever and Ryan Lessing, strategists at JPMorgan Chase, issued a report saying that although the Federal Reserve may not make a technical adjustment to its management interest rate because the federal funds rate remains stable, there are "broader market reasons, and even reasons for financial stability.". Although the Fed's reverse repo tool is "very effective" as the lower limit of the repo rate, almost the entire $13 trillion money market is now trading within 10 basis points, and a large part of it is at or near zero. "It is doubtful how long the current situation related to money market funds can last without technical adjustment," they wrote.