The Federal Reserve yesterday said it will cut the amount of its 84-day Term Auction Facility to $50 billion in October and to $25 billion for November and December, and will then transition to a single cycle of 28-day funds offered every 28 days.

The Fed said it will continue to offer $75 billion per 28-day auction through January, but reductions are expected early next year. The Fed said it will assess over the next several months whether to retain TAF permanently.

Term Securities Lending Facility auctions will also be cut from their current size of $75 billion to $50 billion in the October auction and to $25 billion in the November, December, and January auctions in the current 28-day cycle of auctions.

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