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Fed Returns to Repo Mkt; Says Might Expand Balance Sheet

In a week in which the Federal Reserve’s Federal Open Market Committee delivered a rate reduction to the Fed funds rate, it wasn’t even the biggest news. Not by a long shot. That was about as expected as anything can get in financial markets.

Instead, what had investors’ attention was a money markets operation by the Fed that was a surprise and hadn’t been done since the financial crisis of 2008-09. From Tuesday through Friday the Fed injected about $75 billion of daily liquidity through ...

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