FED MAY ADD RESERVES TO BANKING SYSTEM
The Federal Reserve may intervene in
the government securities market to supply temporary reserves
indirectly via customer repurchase agreements, economists said.
    They said that while the Fed faces no great urgency to add
reserves at the start of the two-week maintenance period today
it would probably do so in order to offset a relatively high
federal funds rate.
    Fed funds opened at 6-3/16 pct and remained there in early
trading. Yesterday, they averaged 6.45 pct, after rising as
high as seven pct at the close.
 Reuter
