The Fed may announce more quantitative easing before year-end

Why it matters: The Bank for International Settlements concluded recently that the spike in rates seen in the repo market in September was due to a structural problem rather than a one-off issue. Consensus is growing that the Fed's daily cash injections are not enough.

• Experts also warned earlier this year that the repo market issues were a sign of bigger trouble brewing in the broader market and could even cause a major selloff for U.S. stocks.

What they're saying: “The Fed’s liquidity operations have not been sufficient to relax the constraints banks will face in the upcoming year-end turn,” Zoltan Pozsar, managing director for investment strategy and research at Credit Suisse, said in the note.

• Pozsar argued in his note that a full-on imposition of quantitative easing will be needed as the end of the year is a time when the repo market typically sees low liquidity.

Go deeper:

• The market will need the Fed again in 2020
• Capital markets are eyeing the world's soaring debt