Fed ramping up repo operations to head off year-end funding issues

The Federal Reserve is ramping up its operations to keep the overnight borrowing market moving efficiently, amid concerns that problems could build as 2019 comes to a close.

Along with the daily operations the New York Fed has been conducting, there will be several additional offerings that will inject at least another $425 billion into a market that provides critical short-term funding for banks, according to an announcement.

The new programs will entail a longer-maturity term repo operation running into the end of the year that will have an offering amount of at least $50 billion.

Also, overnight repo operations on Dec. 31 and Jan. 2 will rise to at least $150 billion. Finally, the…