WASHINGTON – The New York Fed on Wednesday said it has been authorized by the Federal Reserve Board to extend the authority to conduct reverse repurchase agreements by a year. The maximum allotment cap will be increased to $5 billion per counterparty per day from its current level of $3 billion per counterparty per day. This tool is expected to play a part when the Fed decides to end its ultra-low-interest rate stance. The New York Fed stressed "these operations do not represent a change in the stance of monetary policy, and no inference should be drawn about the timing of any change in the stance of monetary policy in the future."
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