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 A key interest rates the Federal Reserve aims to influence to control monetary policy broke above the top-end of the central bank's target range for the first time since the global credit crisis more than a decade ago.
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 The fed funds rate traded on Tuesday 5 basis points above the upper bound of its target range between 2.00% to 2.25%, according to Federal Reserve data released Wednesday morning. The recent climb in overnight repurchasing rates, used by hedge funds and other leveraged investors to finance their trading operations, has resulted in a knock-on increase in the fed funds rate. Since both are short-term sources of funding, a rise in the overnight repurchasing rate means that borrowers in fed funds have to pay up to attract investors. The fed funds rate pushing above its target range underlines analysts' concerns that the U.S. central bank is having trouble keeping its benchmark interest rate at its desired levels. The Fed launched $75 billion of overnight repos on Wednesday morning, in order to inject liquidity bank into the system and to bring the fed funds rate in line within its preferred range. This is the Fed's second repo operation this week.
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The New York Fed held an overnight repurchasing operation for the second time this week on Wednesday morning. The U.S. central bank carried out the full $75 billion of repos, temporarily buying securities from Wall Street dealers to inject liquidity into the system. Earlier this week, a surge in the repurchasing rate, used by hedge funds and banks to fund their trading operations, pushed the fed funds rate close to the top of its targeted range. The incident stirred worries that the central bank is at risk of losing its grip over its benchmark interest rate.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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A key interest rates the Federal Reserve aims to influence to control monetary policy broke above the top-end of the central bank's target range for the first time since the global credit crisis more than a decade ago.
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Americans with credit card debt won't get much relief from Fed rate cut Fox BusinessA crack just emerged in the financial markets: The NY Fed spends $53 billion to rescue the overnight lending market CNNFed expected to cut funds rate to 1.75 percent to 2 percent Fox BusinessThe Fed Needs to Give the Economy a Booster Shot BloombergFed rate cut: Federal Reserve expected to cut the federal funds rate on Wednesday CBS NewsView full coverage on Google News
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PlayVS, which develops software used to operate high school esports competitions, announced today that it completed a $50 million Series C funding round.
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 Investors say the Fed was slow to react to growing stresses in funding markets and the spike in repo rates this week.
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"While on strike, some benefits shift to being funded by the union's strike fund, and in this case hourly employees are eligible for union-paid COBRA so their health care benefits can continue," GM said in a statement.
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Central bank stands ready to inject another $75bn into the financial system on Wednesday
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