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New York Fed's Perli: Treasury bill purchases depend on market conditions, currently zero
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New York Federal Reserve official Roberto Perli stated that the Fed will continue to assess reserve levels, as purchases of U.S. Treasury bills are not on a preset path. Perli noted that earlier this year, the Federal Open Market Committee authorized the New York Fed's market operations desk to adjust reserve management purchase sizes autonomously. In prepared remarks for a New York event, Perli said these purchases, currently at zero, have been adjusted based on 'changing conditions.' He added that the Fed is ready to adjust purchase sizes again in the future to implement the FOMC's policy of keeping reserves in an ample range. Perli indicated the New York Fed will monitor senior financial officers' views on market conditions and other signs of stress in funding markets. He specifically noted that if, as observers expect, there is another large net issuance of Treasury bills in October, the Fed will watch how the market reacts.
Source report
September 23 — New York Federal Reserve official Roberto Perli stated that the U.S. central bank will continue to assess reserve levels, noting that purchases of U.S. Treasury bills are not following a predetermined path.
Earlier this year, the Federal Open Market Committee (FOMC) authorized the New York Fed's market operations desk to adjust the size of reserve management purchases at its own discretion.
In prepared remarks for an event in New York on Tuesday, Perli said that such purchases — which currently stand at zero — have been adjusted based on "changing conditions."
"We stand ready to adjust the size of purchases again in the future to implement the FOMC's policy of maintaining reserves in ample supply," Perli said.
He added that the New York Fed will monitor senior financial officers' assessments of market conditions, as well as other signs of stress in funding markets.
"If, as observers expect, there is another large net issuance of Treasury bills in October, we will be watching how the market reacts," Perli noted.
Source
格隆汇Neutral / independent