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The Fed Plans to Consider Permanent Ways to Keep Money Markets Stable


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The Federal Reserve is going to discuss permanent steps that should help it control interest rates and limit volatility in money markets, according to the minutes of its December meeting.

The central bank increased the size of its interventions in money markets last month, and had an average $235 billion of cash loans outstanding each day over the last days of December, according to Wrightson ICAP. Interest rates were stable at the end of the year as a result, even though year-end is traditionally a tricky time in money markets....


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