Fed Says Monthly T-Bill Purchases Can Shift Up or Down as Reserve Needs Change
Updated
Updated · Bloomberg · May 19
Fed Says Monthly T-Bill Purchases Can Shift Up or Down as Reserve Needs Change
1 articles · Updated · Bloomberg · May 19
Roberto Perli said the Fed’s monthly Treasury bill purchases are not on a preset path and can be increased or reduced with market conditions.
Perli, who runs the New York Fed’s System Open Market Account, said officials stand ready to change the pace as needed to keep reserves within an ample range.
The remarks frame the bill-buying program as a reserve-management tool rather than a fixed commitment, leaving the Fed flexibility if money-market conditions tighten or ease.
What market signals will actually force the Fed to alter its 'flexible' bond buying strategy?
Is the Fed's flexible policy a true fix or a sign it is losing control over money markets?
With a new chair nominee, is the Fed’s era of a massive balance sheet nearing an end?