On Tap Today: Double POMO For MOMO

The Fed is not taking any chances: on the day in which every index is broadly expected to slip into uncharted, even-number territory, Kevin Henry and the other NY Fed Inkjets are making sure to seal the deal not with one but two POMOs, the first one starting at its usual time of 10:15 am for about $1.5 billion, and the second at 1:15pm for a 2 pm closing amounting to roughly $3.5 billion. Since the total will likely be above the magical $5 billion threshold, the probability of a down day is virtually nil.

Why is $5 billion so critical? The TBAC explained it in August...