The Fed may consider lowering the reserve Intrerest Rate to ease financing pressures.

According to Mars Finance, Jin10 reported that the Fed may consider lowering the interest rate on reserves paid to banks in response to the slight tightening situation in the repo market last week. Currently, this interest rate is above the lower limit of the federal funds target range by 15 basis points, with the actual rate at 4.15%. If this rate is lowered by 5 basis points, banks will be more inclined to invest funds in the repo market, thereby suppressing fluctuations in the market repo rates. Analysts at research firm Wrightson ICAP expect that the Fed will ultimately implement this adjustment but point out that making this decision at next week's October meeting may be premature.