NY Fed’s Potter ‘extremely pleased’ with rate control
The Fed’s framework for controlling money market rates has proven ‘effective’, he says
The Federal Reserve's framework for controlling money market rates is "effective", according to the Federal Reserve Bank of New York's Simon Potter, who is "extremely pleased" with its performance so far.
Before the financial crisis the Fed followed a "well-worn playbook" for implementing monetary policy based on the scarcity of reserves, Potter, an executive vice-president, explained on February 22. The expansion of reserves that followed forced it back to the drawing board.
The framework that
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