Take Five: U.S. money market ruckus – one-off or warning?
The sudden stress in U.S. dollar funding markets in recent days has spooked people by stirring memories of the 2008 crisis. A rocketing repo rate — the key measure of liquidity in the global banking system — and a jump in the U.S. Federal Reserve’s target interest rate to levels not seen since 2008 forced the New York Fed to intervene four times to maintain the Fed funds rate in the 1.75%-2.0% range.