NEW YORK (Reuters) - The New York Federal Reserve said on Friday it will hold a series of overnight and term repurchase agreement operations from next week into early October in an effort to maintain its policy rate within its target range.
The regional central bank, which conducts open market operations for the Fed system, has been using repo operations since Tuesday to inject billions of temporary cash into the banking system after money market rates soared earlier this month to levels not seen since the global credit crisis due to a perceived shortage of cash.