Fed mentions possibility of temporarily suspending RMP (reserve management purchases)
Roberto Perli, SOMA manager at the Federal Reserve Bank of New York, 7month 9said in a speech on the day (local time) that reserve management purchases (RMP) are not on a preset path, that their size could be adjusted up or down in certain months, and that they could be temporarily suspended if money-market conditions justify it. The remarks on flexibility in policy implementation could affect short-term funding markets and interest-rate expectations.
A Federal Reserve official responsible for internal operations said that reserve management purchases (RMP) could be temporarily suspended. The remarks directly referred to flexibility in policy operations related to short-term funding markets.
The speaker was Roberto Perli, SOMA manager at the Federal Reserve Bank of New York. He 7month 9made the remarks at a conference held at the New York Fed on the day (local time).
Manager Perli explained that RMP is “not on a preset path.” He then reaffirmed the existing principle that the size of RMP can be adjusted upward or downward in certain months.
He also said that RMP could be temporarily suspended “if the money market environment justifies it.” This wording suggests that exceptional measures are possible in the operation of RMP.
Manager Perli’s remarks focused on reaffirming RMP’s operating principles and the possibility of adjustments. The remarks did not include any specific figures or separate mention of a future schedule.
The remarks represent a case in which the central bank publicly disclosed its operational options concerning short-term liquidity management tools. The related announcement has been recorded by the date of the speech and the speaker.
The above is a summary of factual statements made publicly by a Federal Reserve official responsible for operations. No interpretation or additional speculation has been included in the article.
Sources: 연합인포맥스
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