The St. Louis Fed’s Financial Stress Index eased slightly in the week ended October 11, declining to -1.184 from -1.166 in the prior week which was the highest since February. Last week the economic data and comments from Fed officials offered reassurance that another rate cut could well come out of the FOMC meeting of October 29-30. The FOMC decision to buy Treasury bills through the second quarter 2020 also probably helped to alleviate any concerns about the availability of reserves.
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