Fed may revive more tools to support funding, liquidity – NatWest

The Federal Reserve may roll out another round of liquidity tools next week to bolster markets, beyond the ones they’re already using, writes NatWest Markets strategist Blake Gwinn in a note.

The central back should focus on programs where it’s the direct buyer rather than ones that are only providing funding “and hoping primary dealers (PDCF) or banks (MMLF) will decide to do the heavy lifting.”

Reviving the Money Market Investor Funding Facility (MMIFF) and Term Asset-Backed Securities Loan Facility (TALF) would be most useful for ensuring funding markets are functioning and supporting credit creation, respectively, he writes.

Other crisis-era facilities that could be brought out are Term Auction Facility (TAF), Term Securities Lending Facility (TSLF),  and TSLF Options Program.

https://seekingalpha.com/news/3553892-fed-may-revive-tools-to-support-funding-liquidity-natwest-says