NY Fed's Williams Seeks Dealer Insights on Rising Repo Rates and Facility Use

As per Coinotag, the New York Federal Reserve's recent closed-door meeting with top Wall Street dealers focused on rising tensions in the repo market, particularly the effectiveness of the standing repo facility in controlling short-term rates amid increasing stress signals. New York Fed Chair John Williams convened primary dealers to discuss repo market dynamics and the facility’s role in rate control. The tri-party repo rate has deviated above the Fed’s target, signaling liquidity pressures similar to past episodes. Usage of the standing repo facility remains low due to stigma concerns, despite the Fed’s emphasis on its importance for year-end stability.