House China committee chair urges Fed to review Hong Kong’s access to dollar lifeline

The chairman of an influential congressional committee is urging the Federal Reserve to consider cutting off a potential financial lifeline extended to Hong Kong during Covid-era market turbulence. The Fed should review the Hong Kong Monetary Authority's access to the Foreign and International Monetary Authorities Repo Facility, Rep. John Moolenaar, R-Mich., said in a letter sent to the U.S. central bank last week and exclusively obtained by CNBC. Moolenaar chairs the Select Committee on the Chinese Communist Party. The FIMA facility allows central banks to effectively borrow dollars from the Fed with those countries' Treasury holdings as collateral.