The bank, which manages operations of the short-term federal funds market, injected $7 billion on this occasion — a much smaller amount than the $38 billion deposited in the financial system last Thursday and the $24 billion added last Friday. Yesterday’s $7 billion infusion marks the second addition this week, after a $2 billion added on Monday.
According to the Fed, market conditions suggest that another injection may be needed in the federal funds market "to accommodate heightened reserve needs." Typically, “normal” circumstances see the bank adding $5 billion to $10 billion to the markets on a daily basis.
The bank said it "stands ready to conduct further operations later in the day if needed."