Fed Intervenes to Stabilize US Money Markets Amid Concerns

On November 15, 2025, the New York Federal Reserve president John Williams convened an emergency meeting with Wall Street banks to address concerns over strains in the US money markets. The hastily arranged meeting took place on the sidelines of the Fed's annual Treasury market conference on November 13, 2025.

The meeting underscores officials' worries about the state of a vital, yet arcane corner of the US financial system. Williams solicited feedback from primary dealers, the banks that underwrite the government's debt, on the use of the Fed's standing repo facility, which is seen as a crucial tool to help keep short-term borrowing costs within the central bank's target range.

Repo rates, a closely tracked measure of short-term borrowing costs, have spiked well above the rate set by the Fed in recent weeks, though they have since eased back. However, analysts warn that further bouts of pressure are expected in the coming weeks as banks reduce the size of their balance sheets for year-end reporting purposes.

The New York Fed president has insisted that the standing repo facility will be crucial in relieving this pressure and capping short-term rates. But usage of the facility has been limited, as lenders are often hesitant to use it, fearing it could signal their institutions are under stress.