NEW YORK, Dec 23 (Reuters) - The Federal Reserve on Wednesday awarded $178.33 billion of one-day fixed-rate reverse repurchase agreements to 63 bidders at an interest rate of 0.25 percent, the New York Fed said on its website.
The reverse repurchase agreement program is seen as a critical policy tool for the Fed to drain money from the financial system in an effort to achieve its interest rate objectives.
On Tuesday, the Fed allotted $185.35 billion in one-day reverse repos to 60 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.25 percent.
Tuesday’s amount was the most since Oct. 30 when the U.S. central bank awarded $225.3 billion to 79 bidders at an interest rate of 0.05 percent. (Reporting by Richard Leong; Editing by David Gregorio)