Quarter-end expected to be quiet for Fed liquidity facilities
Key takeaways
- Quarter-end expected to be quiet for Fed liquidity facilities FILE PHOTO: Renovations continue at the Federal Reserve Board building in Washington, D.C., U.S., November 14, 2025.
- Heading into the quarter-end, market participants do not see market pressure growing in a way that would point to a spasm of interest rate volatility and a surge in use of central bank liquidity facilities.
- "I expect normal turn-of-the-quarter pressures but nothing disruptive," said Lou Crandall, chief economist with research firm Wrightson ICAP.
Quarter-end expected to be quiet for Fed liquidity facilities FILE PHOTO: Renovations continue at the Federal Reserve Board building in Washington, D.C., U.S., November 14, 2025. REUTERS/Elizabeth Frantz/File Photo · Reuters By Michael S. Derby Tue, June 30, 2026 at 5:32 PM GMT+7 3 min read By Michael S. Derby
June 30 (Reuters) - The Federal Reserve's rebuild of money market liquidity is pointing to a quiet turn of the quarter, market participants say, as ample central bank cash depresses the volatility that often emerges around such calendar dates.
Heading into the quarter-end, market participants do not see market pressure growing in a way that would point to a spasm of interest rate volatility and a surge in use of central bank liquidity facilities.