The Traderszone Network

Published in TZ Latest News 26 August, 2016 by The TZ Newswire Staff

New York Fed’s Potter: Excess bank reserves don’t hinder policy

Some comments on mechanical policy issues from NY Fed market operations head Potter
– Central banks should ease stigma of their lending facilities
– Hard to shrink balance sheets if rates often near zero
“Recent experience does not suggest that the interbank market is special or that keeping an abundance of excess reserves prevents effective monetary policy implementation,” he said.