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.

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