The discussions came about a month and a half after funding pressures sent repo rates soaring and the fed funds rate briefly above its target range.
One option that received considerable discussion was a so-called standing repo facility – essentially a mechanism where the Fed will step in whenever needed to supply banks with reserves in exchange for ultra-safe collateral like Treasury debt.
At their October 29-30 meeting, Federal Open Market Committee members weighed several options ahead for keeping the repo market stable and maintaining the central bank's key lending rate within its target range. A standing repo "would likely provide substantial assurance of control over the federal funds rate, but use of the facility could become stigmatized, particularly if the rate was set at a relatively high level," minutes from the October meeting stated.
In addition to the standing repo, officials discussed "modestly sized, relatively frequent repo" operations that nonetheless would not be permanent.
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