Since mid-September, financial observers have been concerned by reports that the Federal Reserve is lending tens of billions of dollars to unnamed parties, believed to be major banks, under overnight repurchase agreements, commonly called repos.
Last Friday, October 11, the Fed issued a statement briefly describing these activities as increased purchases of Treasury bills to earn additional income needed to meet anticipated higher expenses. The Fed further stated that repurchase lending activities for overnight and term durations will continue at least through January, 2020, to ensure that reserves remain ample and to mitigate risk of money market pressures which might otherwise raise the value of the dollar.
This additional creation of monetary base, even though short term, will likely weaken the dollar sufficiently to allow it to move lower together with currencies of other trading partners. This activity may be proceeding at the request of the Trump Treasury so current economic growth will continue.