In recent weeks, the Federal Reserve has provided billions of dollars of liquidity for participants in the market for repurchase agreements, or repos, to stabilize interest rates following a spike in mid-September.
The Fed remains divided on the trajectory of interest rates; a pick up in U.S. housing activity may increase this division.
The Federal Reserve delivered on its widely expected quarter-percentage point interest-rate cut at the July meeting. It was the first reduction since 2008 and came in response to slowing global economic growth and muted inflation.
The Japan election could have consequences for the future leadership of the Bank of Japan and the country’s impact on global interest rate trends.