U.S. central bankers on Friday signaled they do not plan to touch the dial on their super-easy policy for some time, expressing little concern over the rapid rise in U.S. Treasury yields in recent weeks, and hope for a robust recovery.
By Reuters Staff
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FILE PHOTO: Federal Reserve Bank of Atlanta President Raphael Bostic participates in a panel discussion at the American Economic Association/Allied Social Science Association (ASSA) 2019 meeting in Atlanta, Georgia, U.S., January 4, 2019. REUTERS/Christopher Aluka Berry
(Reuters) - The U.S. economy is still under “considerable distress” and the Federal Reserve will continue to provide support until the labor market is stronger and average inflation is on track to meet the U.S. central bank’s long-term target, Atlanta Fed President Raphael Bostic said on Friday.
“We’re ready and able…to support the recovery as long and as strongly as necessary,” Bostic said during a virtual event organized by Stanford University.
Texas's state power regulator on Friday unanimously vetoed a request to reduce skyhigh power prices during the final day of the state's February freeze, saying even a partial repricing could have unintended effects.
Norwegian Air expects its dispute with Boeing over the cancellation of orders for 97 aircraft to be decided in U.S. legal proceedings and not as part of an Irish restructuring process, a lawyer for the airline said on Friday.
(In 2nd and 7th paragraphs, corrects repo rate to -3% to -4%)
NEW YORK, March 4 (Reuters) - The cost of borrowing U.S. Treasuries in the overnight repurchase agreement, or repo market, went negative on Thursday, analysts said, caused by the recent bond market sell-off and suggesting stress in money markets.
That repo rate, which is typically positive, was -3% to -4%, two analysts said.
Negative repo rates typically occur when a particular collateral security becomes in demand - in this case analysts pointed to the 10-year Treasury - or there is a reduced supply in the repo market. In order to borrow these securities, buyers have to tempt potential sellers with cheap cash or a repo rate that is less than the general collateral repo rate.