Federal Reserve Enhances Liquidity Tools Amid Market Pressure

According to BlockBeats, Federal Reserve officials responsible for implementing monetary policy stated on Friday that the market has coped well with last month's pressures as the Fed took steps to strengthen a key liquidity tool. Roberto Perli, the manager of the Federal Reserve's System Open Market Account, noted that despite tightened liquidity in the U.S. Treasury cash market in early April, these markets continued to function normally, partly due to the resilience of liquidity in the U.S. Treasury repo market. Following the Trump administration's announcement of large-scale trade tariffs, the market performed well during this period of stress. However, Perli emphasized that this experience highlighted the need for the Federal Reserve to further explore ways to provide rapid liquidity to the market. He mentioned that the Standing Repo Facility (SRF) will operate in both the morning and afternoon "in the near future." Perli pointed out that these early settlement auctions, combined with the current afternoon auctions, will enhance the effectiveness of the SRF as a tool for monetary policy implementation and market operations.