Bessent Says Expanding Fed’s FIMA Repo Facility Would Be Reasonable
U.S. Treasury Secretary Bessent said it would be reasonable for the Federal Reserve to consider expanding the size of its FIMA repo facility. He said the Fed’s FIMA repo facility is no different from foreign-exchange swap lines. Bessent added that he is maintaining close contact with European counterparts, including the European Central Bank, and has assured European officials that the move would simply be a reallocation of reserves. In his view, the euro is closer to its equilibrium value. He also said he does not believe carry trades will disappear completely.
U.S. Treasury Secretary Bessent said it would be reasonable for the Federal Reserve to consider expanding the size of its FIMA repo facility.
He said the Fed’s FIMA repo facility is no different from foreign-exchange swap lines. Bessent added that he is maintaining close contact with European counterparts, including the European Central Bank, and has assured European officials that the move would simply be a reallocation of reserves.
In his view, the euro is closer to its equilibrium value. He also said he does not believe carry trades will disappear completely.
He said the Fed’s FIMA repo facility is no different from foreign-exchange swap lines. Bessent added that he is maintaining close contact with European counterparts, including the European Central Bank, and has assured European officials that the move would simply be a reallocation of reserves.
In his view, the euro is closer to its equilibrium value. He also said he does not believe carry trades will disappear completely.