(Reuters) – The Federal Reserve Bank of New York said on Friday that it will loosen the eligibility requirements for its reverse repo facility, expanding access to the program at a time that it is seeing higher demand from institutions coping with excess cash.
Usage of the facility increased in recent days as money market funds and other eligible firms look for a place to temporarily park their money in exchange for a return. The New York Fed uses the program to help set a floor on short-term interest rates, which are sinking at a time when banks are swimming in reserves.
(Reporting by Jonnelle Marte; Editing by Chizu Nomiyama)
