Some Banks Hesitate to Tap a Fed Lending Tool

The Federal Reserve is struggling to persuade some banks to use a lending tool designed to improve the central bank’s control over short-term money markets.

- By Matt GrossMAN Anp Sam GOLDFARB

Banks have made more use of the tool, called the standing repo facility, over the past month. But there are signs some are reluctant to tap it more aggressively, which would make it easier for the Fed to maintain a firm grip on rates as it winds d