Economy7 hours ago (Apr 08, 2021 04: 25PM ET)
© Reuters. The cornerstone for the Federal Reserve Bank of New York is envisioned in the Manhattan borough of New York City
(Reuters) – The Federal Reserve’s continuing asset purchases are lifting bank reserves to fresh highs and contributing to a new standard for money markets, a senior New York Fed official said on Thursday.
The regional Fed bank can make minor adjustments to maintain those buys proportional to the outstanding supply of Treasury vouchers 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 purchasing $120 billion in bonds each month to strengthen the market, could also make changes to the rate it pays on bank reserves or on reverse repurchase agreements if desired to maintain its overnight benchmark interest rate within the goal range, she said.
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