Treasury's Mysterious Move to Raise Fed Facility Cap

Last week, the Federal Reserve ran a facility that lent foreign central banks zero dollars for eight weeks in a row. It was a peculiar moment for Treasury Secretary to suggest raising the cap on this idle window.

The Treasury Secretary's concern was not about a shortage of dollars but something else entirely.

The Fed has been lending nothing, and it is unclear what the Treasury Secretary wants to achieve by increasing the amount lent.