NEW YORK, Feb 2 (Reuters) - The U.S. Federal Reserve added two U.S. money market funds managed by HSBC’s global asset management unit as participants in its reverse repurchase agreement program, the New York Federal Reserve said on Tuesday. The Fed’s reverse repo program is seen as a critical policy tool for the U.S. central bank to drain money from the financial system in an effort to achieve its interest-rate objectives. The HSBC Prime Money Market Fund and HSBC US Government Money Market Fund are reverse repo counterparties, effective Feb. 2, the New York Fed said. Reporting by Richard Leong; Editing by Chizu Nomiyama
The US Federal Reserve has selected two of HSBC 's largest money market funds as participants in its reverse repurchase agreement programme . The reverse acquisition programme is viewed as a critical policy tool for the US central bank to drain money from the financial markets in an effort to achieve its interest rate targets .