Fed's Logan speech - not on her economic nor monetary policy outlook

Author: Eamonn Sheridan | Category: Central Banks

Headlines from a speech by Lorie Logan, NY Fed (senior VP), head of Market Operations Monitoring and Analysis (MOMA) at the NY Fed

  • MOMA executes monetary policy at the direction of the FOMC
Noting these, but nothing on current policy.

  • Eventual Treasury purchases likely to be larger than before financial crisis because Fed's liabilities grow faster
  • Says NY Fed will study money markets to see how they operate with lower level of bank reserves in the system
  • Says 'ample reserves' policy to keep rates stable if Fed needs to supply liquidity, buy assets to support economy
  • Bank borrowing rates above interest on excess reserves does not mean reserves are not well supplied
  • US bank reserves are ample, above system's demands 
  • Fed will eventually need to buy treasuries to offset decline in reserves 
  • Says NY Fed might have to respond to unanticipated changes in reserves by conducting repo operations

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