Understanding the Fed’s proposed reserves tool

Federal Reserve

In the Federal Open Market Committee’s most recent minutes, the central bank added a short sentence noting that some participants wished to discuss some new tools designed to support the Fed’s long-term balance sheet plans.

“At future meetings, the committee should discuss the potential benefits and costs of tools that might reduce reserve demand or support interest rate control,” the minutes stated.

While the Fed has not given any clear statement about the objectives or the substance of the

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: