The Federal Reserve may consider lowering the reserve interest rate to alleviate financing pressure

ChainCatcher news, according to Jinshi reports, in response to the slight tension in the repurchase market last week, the Federal Reserve may consider lowering the interest rate on reserves paid to banks. Currently, this rate is 15 basis points above the lower bound of the federal funds target range, with an actual rate of 4.15%. If this rate is lowered by 5 basis points, banks will be more inclined to allocate funds to the repurchase market, thereby suppressing fluctuations in market repurchase rates. Analysts at research firm Wrightson ICAP expect that the Federal Reserve will ultimately implement this adjustment, but note that it may be too early to make this decision at next week's October meeting.