JAKARTA. The Central Bank of the United States (US), The Federal Reserve (The Fed) again injected funds into the financial market to reduce interest on loans. On Wednesday (18/9), the Fed poured US$ 75 billion or Rp. 1,057 trillion (exchange rate of Rp. 14,000)
This step was taken after loan interest rates rose to 5% on Monday evening local time, 2.29% higher compared to its level last weekend. Then on Tuesday, it rose again to 10%.
As previously planned, the Fed injected US$ 75 billion on Wednesday after injecting US$ 53 billion on Tuesday.
In two consecutive days, the Fed has been running REPO operations. Repurchase Agreement (REPO) operation itself is a process in which the central bank seeks to reduce pressure on the market by purchasing bonds and other securities. The action was an attempt by the Fed to reduce pressure.
Quoting CNN, on Thursday (19/9/2019), Fed Governor Jerome Powell said that this operation was effective in reducing market pressure. (AM/AR)