FOMC Minutes: “The staff provided an update on its assessment of the stability of the U.S. financial system and, on balance, continued to characterize the system’s financial vulnerabilities as notable.” “Hedge fund leverage reached its highest level since 2013.” Ruh-roh…
Source: https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20240731.pdf TLDRS: The Federal Reserve’s July FOMC meeting minutes highlight economic concerns and financial vulnerabilities. Usage of the Overnight Reverse Repo (ON RRP) facility slightly declined, with a more noticeable decrease expected later in the year due to increased Treasury bill issuance but could change due to idiosyncratic factors specific to some ON RRP participants. …