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Federal Reserve's Williams: Reserves Back to Adequate Levels
Summary: According to sources, the Federal Reserve's Williams stated that through balance sheet reduction, the Fed has essentially lowered bank reserve levels to 'adequate' levels. He noted that reaching this threshold prompted the Fed to restart bond purchases last week, known as 'reserve management purchases'. Williams emphasized that bank reserves must gradually increase in line with ...
According to sources, the Federal Reserve's Williams stated that through balance sheet reduction, the Fed has essentially lowered bank reserve levels to 'adequate' levels. He noted that reaching this threshold prompted the Fed to restart bond purchases last week, known as 'reserve management purchases'. Williams emphasized that bank reserves must gradually increase in line with bank demand.
