(Reuters) – The Federal Reserve’s ongoing asset purchases are lifting bank reserves to new highs and contributing to a new normal for money markets, a senior New York Fed official said on Thursday.
The regional Fed bank could make minor adjustments to keep those purchases proportional to the outstanding supply of Treasury coupons and Treasury Inflation-Protected Securities (TIPS), Lorie Logan, an executive vice president at the New York Fed and the manager of the System Open Market Account (SOMA), said in prepared remarks.
The U.S. central bank, which has been buying $120 billion in bonds each month to bolster the economy, could also make changes to the rate it pays on bank reserves or on reverse repurchase agreements if needed to keep its overnight benchmark interest rate within the target range, she said.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Rate Lift Off ‘Highly Unlikely’ Before 2022, Powell Says
UK’s Johnson says he shares concerns over Greensill lobbying
McDonald’s to mandate anti-harassment training worldwide
U.S. import prices increase solidly, seen temporarily boosting inflation
Labor Secretary Marty Walsh predicts more Amazon unionization efforts
Global regulators to refine climate fallout on banks
Wells Fargo profit boosted by lower reserves, easing sales scandal costs
JPMorgan profits on capital markets in a cash-flush economy
Fed’s Kaplan: will be ‘a while’ until U.S. reaches full employment
Germany’s economic institutes cut GDP 2021 growth forecast to 3.7% – sources
Asian-American businesses suffer outsized pandemic toll
Coinbase gets $250 reference price ahead of market debut
IMF calls for additional euro zone fiscal stimulus in 2021-22
Arrested Suez ship fit for onward passage, manager says
Dogecoin price soars to record high amid latest crypto frenzy
Wells Fargo profit beats estimates as credit costs stabilize
JPMorgan profit surges on trading, investment banking boost
EU to borrow around 150 billion euros annually for recovery fund
Lebanon’s Central Bank says its intervention contained inflation at 84%
Bank Earnings, Coinbase Goes Public, IEA Hikes Oil Forecast – What’s up in Markets