Fed’s Williams: Fed close to desired level for bank reserves
Federal Reserve (Fed) Bank of New York President John Williams spoke at the United States (US) Treasury Market Conference in New York on Wednesday. He said that determining whether reserves are ample is an inexact science and claimed he is closely watching the markets for signals.
Key takeaways
Fed close to desired level for bank reserves.
I am closely watching markets for liquidity signals.
Renewed balance sheet expansion is technical and not monetary policy.
Standing repo facility is effective, should be used when needed.
It is an inexact science to determine whether reserves are ample.
Standing repo facility can be used without stigma."
Source : Fxstreet.com