Federal Reserve officials are considering lending cash directly to hedge funds through clearinghouses to ease stress in the repo market. But that could be a tough sell for policy makers. https://t.co/CUlI4o943Q
— WSJ Markets (@WSJmarkets) January 14, 2020
Markets are always so "stressed" (that means their bets are losing and they're having a hard time borrowing money to cover their losses. Close enough, anyway.)
Critics of the new plan say if the Fed lends cash directly through the clearinghouse, it could end up contributing to a hedge-fund bailout.
"Critics."