Fed Funds Prints 2.25%, Breaching Target Range, As IOER Spread Explodes

• Fed Funds Prints 2.25%, Breaching Target Range, As IOER Spread Explodes
  by Tyler Durden, https://www.zerohedge.com/
  With the Fed’s repo operation oversubscribed for the second day in a row, as $9BN in liquidity requests remained unfulfilled by the $75BN operation, it is perhaps not a surprise that as the funding shortage persists, today’s effective fed funds rate printed at 2.25%, which while down from 2.30% yesterday, was for the second day in a row above the top end of the range, in this case by 25bps above the top of the Fed’s new rate corridor of 1.75% – 2.00% (when accounting for yesterday’s 25bps rate cut).
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  Furthermore, now that the Fed’s Interest on Excess Reserves was cut by 30bps on Wednesday to 1.80%, it means that the effective Fed Funds rate is now a record 45bps above the IOER.
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