News

Jinse Finance reported that John Williams, President of the Federal Reserve Bank of New York, stated that recent volatility in the overnight funding market indicates that the Federal Reserve's bank reserves are approaching their ideal level. In remarks prepared for a conference in Frankfurt on Friday, Williams said: "Based on the continued pressures in the recent repo market, as well as other increasing signs that reserves are shifting from 'ample' to 'adequate,' I expect we will soon reach an adequate level of reserves." Williams also stated that he expects short-term liquidity tools such as the Standing Repo Facility to continue to play a "key role" in the money market to ensure that the federal funds rate remains within the target range set by policymakers. He said: "I fully expect the SRF to continue to be actively used in this way, thereby curbing upward pressure on money market rates." (Golden Ten Data)