December FOMC minutes show the Fed is worried short-term funding could seize up

The December FOMC minutes reveal that the Federal Reserve is concerned about potential disruptions in short-term funding markets. Officials noted that a lack of liquidity could lead to a seizing up of these markets, which may impact broader financial stability. The Fed is closely monitoring these conditions and is prepared to take necessary actions to ensure smooth functioning. Additionally, the minutes highlighted ongoing inflation concerns and the need for careful monetary policy adjustments. Overall, the Fed's focus remains on maintaining stability in the financial system amidst these challenges.

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