Federal Reserve is injected hundreds of billions of dollars into the financial system. This look like the pre-financial crisis of 2007-2008. If banks do not have enough liquidity and do not trust each other, the financial system is in a big trouble. On Sept. 17, overnight repo rates jump to 10% from less than 2% the week before. The Fed intervention in this overnight lending market will continue until next month and could reach $400 billion. The repo market is about $2.2 trillion.
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