FOMC December Report: Fed Short-Term Funding Concerns

Federal Reserve Raises Concerns

Federal Reserve (Fed) officials are increasingly focused on whether the financial system has sufficient cash to operate in an orderly manner. This remains important even if interest rates remain unchanged.

Short-Term Funding Stress Danger

Minutes from the Federal Open Market Committee (FOMC) for December reflect concerns that short-term funding stress may quietly emerge and lead to sudden fluctuations.

Measures Against Cash Shortage

The minutes detail steps to be taken to prevent cash shortages expected to increase due to seasonal pressures leading up to early 2026.