The Fed Is Considering Another Version of ‘Quantitative Easing’

https://www.cnbc.com/2019/04/29/fed-looking-at-a-program-that-could-be-version-of-quantitative-easing.html

• Federal Reserve economists have floated the idea of a “standing repo facility” which would allow banks to exchange Treasurys for reserves.
• The idea would be to get banks to hold fewer reserves, and thus would help the Fed in its quest to shrink its balance sheet.
• There’s considerable support for the plan, but critics say it could represent more dangerous tinkering with financial markets.

 Federal Reserve officials are considering a new program that would allow banks to exchange Treasurys for reserves, a move aimed at ensuring liquidity during difficult times that also would help the central bank decrease the size of its nearly $4 trillion balance sheet.