New York Fed's Perli: Reserve management purchase operations will maintain flexibility

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ME News, July 10 (UTC+8), New York Fed Open Market Account Manager Perli said that the reserve management purchase operations have no preset path, and the New York Fed's open market desk can increase or decrease purchase amounts based on money market conditions. Additionally, Perli stated that as Fed Chairman Warsh appoints a working group on the Fed's balance sheet, the desk is prepared to implement any changes and interest rate control framework that the committee may decide to pursue. The Fed began reserve management purchase operations last December, anticipating a rapid drain of reserves in April due to tax payments flowing into the Treasury General Account. When the Treasury's bank account balance at the Fed increases, bank system reserves decline. (Source: Jinshi)
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