NY Fed's Perli says rate control toolkit can navigate lower reserve demand

A Federal Reserve Bank of New York official said on Tuesday that the Fed's current rate-control toolkit would still function even in a system where banks hold fewer reserves. The comments are relevant to the operating framework for monetary policy and bank liquidity, but the article does not indicate any immediate policy change or market-moving announcement.

Analysis

A Federal Reserve Bank of New York official said on Tuesday that the Fed's current rate-control toolkit would still function even in a system where banks hold fewer reserves. The comments are relevant to the operating framework for monetary policy and bank liquidity, but the article does not indicate any immediate policy change or market-moving announcement.