NY Fed’s Potter: technical tweak helped avoid breaching target range
Effective federal funds rate has been rising in the target range
A technical adjustment to the Federal Reserve’s interest rate framework helped ensure the effective interest rate did not breach the central bank’s target range, Simon Potter said on August 4.
The New York Fed’s head of markets told a conference in Manila the Fed had become concerned that the effective federal funds rate was trending close to the top of the target band. With this in mind, when the Fed raised the target range in June by 25 basis points, it only raised the interest it paid on
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