U.S. Fed awards record amount of term deposits

U.S. Fed awards record amount of term deposits
| Reuters

The U.S. central bank allotted $171.86 billion of them to 66 banks which will receive an interest rate of 0.26 percent.
This compared with the $110.03 billion in deposits awarded a week earlier to 67 banks which received an interest rate of 0.26 percent.
The Fed has ramped up testing of its term deposit facility after the 2008 financial crisis to help policymakers drain cash from the banking system when they decide to tighten monetary policy.
On Sept. 4, the Fed said it plans to conduct a series of eight seven-day TDF operations starting in October. These tests will have an early withdrawal feature in which banks can enter into the TDF and pull the money out before the maturity date.