WASHINGTON (MNI) – The following is a statement issued by the
Federal Reserve Wednesday morning:
The Federal Reserve Board on Wednesday announced that it has
authorized ongoing small-value offerings of term deposits under the Term
Deposit Facility (TDF). These small-value offerings are designed to
ensure the operational readiness of the TDF and to provide eligible
institutions with an opportunity to gain familiarity with term deposit
procedures. The development of the TDF and the ongoing small-value TDF
offerings are a matter of prudent planning and have no implications for
the near-term conduct of monetary policy.
The terms and frequency for these auctions may evolve over time,
but the Board currently anticipates that TDF auctions will be held about
every other month. Following this approach, two auctions will be
conducted over the remainder of this year on October 4 and November 29;
the corresponding settlements will occur on October 7 and December 2,
respectively. Each of these auctions will offer $5 billion of 28-day
deposits; the modest increase in the offering amount from the $2 billion
offering amount at auctions held in June and July is intended to
encourage broad participation by depository institutions at the upcoming
auctions. The schedule, amounts, and other terms for small-value
auctions to be conducted in 2011 will be announced at later dates.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MMUFE$,MGU$$$,MFU$$$]