Core Viewpoint - The Federal Reserve should strengthen its mechanisms for controlling interest rates to more effectively prevent spikes in money market rates during periods of market stress [1] Group 1 - Dallas Fed President Logan emphasizes the need for more banks to utilize the discount window and to centralize operations of the Standing Repo Facility (SRF) [1] - Logan suggests that the Federal Reserve should pay attention to broader market interest rates, not just the federal funds rate [1] - According to Logan, interest rate control involves maintaining the federal funds rate within the target range, but it should encompass a wider perspective on market rates [1]

Domestic News - The People's Bank of China released the monetary policy implementation report for the first quarter of 2025 [1] - Premier Li Qiang chaired a State Council executive meeting to study and implement President Xi Jinping's important speech on economic and social development during the "14th Five-Year Plan" period, and discussed measures to deepen the reform and innovation of national-level economic and technological development zones [1] - The central bank established a re-lending program for service consumption and elderly care with a quota of 500 billion yuan, aimed at encouraging financial institutions to increase support for key sectors such as accommodation, catering, cultural and sports entertainment, and education [1] - The China Securities Regulatory Commission issued the legislative work plan for 2025 to maintain stable and healthy market development and protect the legitimate rights and interests of small and medium investors [1] - The China Futures Association strengthened the management of futures intermediaries and standardized their behavior [1] - The Guangzhou Futures Exchange modified trading rules and published settlement rules for the first time [1] - The General Administration of Customs and six other departments adjusted management measures related to special customs supervision areas, bonded supervision places, and processing trade outside the zones [1] International News - ECB Governing Council member Simkus stated that a rate cut in June is necessary for the European Central Bank [2] - Japan is considering exporting next-generation jet fighters developed jointly with Australia, the UK, and Italy [2] - India requested the US to eliminate all current and future tariffs, proposing to reduce the tariff gap with the US from nearly 13% to less than 4% under a potential trade agreement [2] - Fed Governor Barr indicated that the Federal Reserve may face difficulties if inflation and unemployment rise simultaneously [2] - Fed Governor Kugler noted that the labor market may be approaching full employment [4] - Fed officials announced that regular operations of the Standing Repo Facility (SRF) are forthcoming [4] - Von der Leyen mentioned a potential visit to the US if a specific trade agreement is reached [4]

Core Viewpoint - The Federal Reserve is set to implement regular operations of the Standing Repo Facility (SRF) to enhance liquidity tools in response to recent market pressures [1] Group 1 - Federal Reserve officials indicated that the market has responded well to liquidity pressures experienced in April, particularly in the U.S. Treasury cash market [1] - Roberto Perli, a manager at the Federal Reserve's Open Market Account, noted that the resilience of funding liquidity in the U.S. Treasury repo market contributed to the market's stability during this period [1] - The experience during the recent market stress highlights the need for the Federal Reserve to further explore ways to provide rapid liquidity to the market [1] Group 2 - The SRF is expected to conduct operations in the near future during both morning and afternoon sessions [1] - Early settlement auctions, along with the current afternoon auctions, are anticipated to enhance the effectiveness of the SRF as a tool for monetary policy implementation and market operations [1]