Fed considering tools to help flow of reserves in the system
Remarks are some of the most detailed Jerome Powell has made on financial plumbing issues
The Federal Reserve is considering making adjustments to its operating framework that could improve the flow of reserves in the system, chairman Jerome Powell said on October 30.
The Fed is looking at reintroducing a version of intraday liquidity measures, or “daylight overdrafts”, in response to last month’s liquidity episode, Powell said during the rate decision press conference.
In addition, the chair said, there are a few other “technical things” that the Fed is considering to allow cash
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