Fed Schedules Term Deposit Auctions - TheStreet

Fed Schedules Term Deposit Auctions

As part of its efforts to gradually exit accommodative monetary policies, the Fed announced three small-value term deposit auctions over the next two months.
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The

Federal Reserve

announced three term deposit auctions through its term deposit facility over the next two months on Friday. The small-value auctions are part of the Fed's plan to gradually unwind accommodative policies enacted in response to the financial crisis.

"These auctions are a matter of prudent planning and have no implications for the near-term conduct of monetary policy," the central bank said in its release.

The first auction is scheduled for June 14 and will consist of $1 billion of 14-day term deposits. The second is an auction of 28-day term deposits planned for June 28, and the third offering of 84-day term deposits is slated for July 12. Exact amounts of the second and third term deposit auctions will be announced at a later, undisclosed date.

The Fed said it may schedule up to two more small-value auctions through its term deposit facility later in the summer.

-- Written by Melinda Peer in New York

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