The New York Federal Reserve is scaling back its emergency intervention into jittery financial markets.
The NY Fed said Monday it will reduce the frequency of its repo operations "in light of more stable" market conditions.
The Fed began pumping in vast amounts of money into the overnight lending markets last fall as borrowing rates spiked.
But starting May 4, the NY Fed said it "intends" to scrap that afternoon repo operation, leaving just the morning one.
Likewise, the NY Fed said it will reduce the frequency of three-month repo operations to once every two weeks instead of once a week.
Of course, this plan could change should market conditions deteriorate again.
The NY Fed promised to adjust repo operations "as appropriate" to "support the smooth functioning" of funding markets.