43 posts on "Financial Markets"
May 27, 2026
Highlights from Roberto Perli’s Speech on Reserve Management and the SOMA Portfolio
Roberto Perli, manager of the Federal Reserve’s System Open Market Account (SOMA), spoke about reserve management and the SOMA portfolio at the Atlanta Fed’s Financial Markets Conference on May 19.
Posted in Financial Markets | Permalink
April 13, 2026
The Federal Reserve’s Transition to Ample Reserves: A View from the SOMA Annual Report
From 2022 until December 2025, the Federal Reserve reduced its securities holdings by over $2 trillion, guided by the plans announced by the Federal Open Market Committee (FOMC) in May 2022. The FOMC ended this runoff when it decided reserves had reached an ample range. To maintain adequate reserve levels, the FOMC directed the Open Market Trading Desk at the New York Fed (the Desk) to increase System Open Market Account (SOMA) securities holdings through ongoing reserve management purchases (RMPs).
Posted in Financial Markets | Permalink
April 8, 2026
How Changes to GSE Ownership Structure Could Affect the Agency MBS Market
The Treasury Market Practices Group (TMPG) recently released a consultative note highlighting theoretical implications for the agency mortgage-backed securities (MBS) market from potential changes to the ownership structure of Fannie Mae and Freddie Mac, which are government-sponsored enterprises (GSEs).
Posted in Financial Markets | Permalink
February 19, 2026
International Currency Dominance: Market Structure, Asset Safety, and Liquidity
The fourth International Roles of the U.S. Dollar Conference, held in September, brought together researchers, practitioners, and policymakers to examine the factors sustaining the dollar’s international roles, the evolving global fund allocation to U.S. safe assets, and the liquidity of these assets in a time of geopolitical and technological changes.
Posted in Financial Markets | Permalink
February 5, 2026
The FX Market’s Evolution in Focus at the 2025 FX Market Structure Conference
The foreign exchange (FX) market is the largest financial market by trading volume in the world, with over $9 trillion in average daily turnover, according to the latest Bank for International Settlements data. Given the market’s important role in supporting international trade, investment, and finance, it is crucial to understand and analyze developments in it to ensure it functions effectively and resiliently.
Posted in Financial Markets | Permalink
January 16, 2026
How Monetary Policy Tools Helped Limit Money Market Pressures at Year‑End
Similar to prior year-ends, overnight secured money markets experienced rate pressures on and around Dec. 31, 2025. While these pressures were substantial, they were short-lived, and overall market functioning was orderly. Moreover, higher overnight rates in the repurchase agreement, or repo, market did not spill over to the Federal Reserve’s policy rate, the federal funds rate. Orderly conditions over year-end followed recent decisions by the Federal Open Market Committee (FOMC) to resume balance sheet growth and enhance standing repo (SRP) operations. These recent decisions were made to maintain ample liquidity in the financial system and keep the federal funds rate within the target range set by the FOMC.
December 17, 2025
Ideas in Focus at the 2025 U.S. Treasury Market Conference
As the deepest and most liquid securities market worldwide, the U.S. Treasury market plays a critical role in the global economy. As Treasury Secretary Scott Bessent said in his remarks, “Maintaining a robust Treasury market—and strengthening it even further—is essential.”
Posted in Financial Markets | Permalink
November 19, 2025
Understanding the Federal Home Loan Bank System: What It Is and Why It Matters
The Federal Home Loan Bank (FHLB) system was created almost a century ago and has evolved over time to play an important role in monetary policy implementation. It is a key participant in money markets, providing liquidity to thousands of financial institutions in the U.S. This article looks at why this system was created, how it is structured, and the composition of its balance sheet.
October 17, 2025
NBFIs in Focus: The Basics of Private Credit
This is part of an ongoing educational series on nonbank financial institutions.
Nonbank financial institutions (NBFIs) play a critical role in private credit, which has recently become a key source of financing for corporations. In this article, we describe private credit and its recent growth, the role of NBFIs in the private credit ecosystem, and how private credit interacts with the Federal Reserve’s monetary policy, prudential supervision, and financial stability objectives.
October 16, 2025
NBFIs in Focus: The Basics of Hedge Funds
This is part of an ongoing educational series on nonbank financial institutions.
Hedge funds are a category of nonbank financial institutions (NBFIs) that play a significant role in the U.S. financial system. Since they transact in a wide range of asset classes and are major counterparties of the largest banks, their activities increasingly affect market liquidity, price discovery, and overall market functioning. In this article, we discuss the role of hedge funds in the U.S. financial system, their growth, and their relevance to the Federal Reserve’s monetary policy, prudential supervision, and financial stability objectives.
