Saturday, August 18, 2007

Federal Reserve's Liquidity Boost to U.S. Financial Markets

August 18, 2007

Federal Reserve played a significant role in recent days by boosting liquidity in a shaken financial market. Fed's repurchase of mortgage-backed securities boosts liquidity in the market place, and is expected to surpass the previous record set in 2001.

Year Mortgage-backed Total Securities
Securities Repo (in Billions) Repo (in Billions)

2001 191 1492
2002 137 1141
2003 181 1516
2004 145 1870
2005 152 2097
2006 175 2125
2007YTD 187 1435

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