Fed's effective funds rate came in at 0.29% on Friday for quarter-end
Fed's effective funds rate came in at 0.29% on Friday for quarter-end. That was down from the 0.40% effective rate that persisted every other day during September, and continues the trend of a measurably lower rate for month- and quarter-end. Note too that the Open Market Desk conducted large reverse repo operations during the week, all over $200 B, trying to drain the excess cash, while banks were anxious to park their cash at the safety of the Fed. Indeed, Friday's RRP totaled $412.5 B, the second largest on record, bested only by the $474.6 B on December 31, 2015. The large draining operations were necessitated, in large part, by the upcoming changes in money market funds with the October 14 deadline looming.