Brief
As SOFR Eases, Funds Rate Refuses to Follow
Executive Summary The effective federal funds rate (EFFR) remains pinned at 3.64%, even as SOFR pressures have eased and the Federal Reserve has injected liquidity through T-bill purchases. The rate’
Executive Summary The effective federal funds rate (EFFR) remains pinned at 3.64%, even as SOFR pressures have eased and the Federal Reserve has injected liquidity through T-bill purchases. The rate’s proximity to the interest on reserves level underscores continued tightness in short-term funding markets, driven by repo dynamics, structural constraints, and limited balance sheet flexibility. A pending leverage ratio... The post As SOFR Eases, Funds Rate Refuses to Follow appeared first
Source
- Connect CREconnectcre.com
