[The Federal Reserve Urged to Take Stronger Measures to Address Short-Term Funding Market Pressure] On November 13, the $12 trillion global bond market's pressure sparked more calls for the Federal Reserve to take stronger measures to ease stress in the short-term funding market. Bank of America and Barclays warned that the Federal Reserve might need to increase short-term market lending or directly purchase securities to inject liquidity into the banking system and alleviate the pressure of rising overnight rates. TD Securities' Head of Rates Strategy, Gennadiy Goldberg, stated that the Fed's recent gradual adjustments to its balance sheet policy might be too slow to prevent the issue of reserve scarcity. Although the Federal Reserve announced it would stop reducing its holdings of U.S. Treasuries on December 1, market pressures persist.
--