NY Fed official sketches key factors for balance sheet plans
Fed’s nominal securities purchases may be higher than before crisis, official says
The Federal Reserve may buy more government securities in nominal terms than it did before the 2008 financial crisis, according to the head of the New York Fed’s market operations.
When the Fed resumes purchasing securities, the purchases will have to be larger in nominal terms to accommodate for the faster growth in non-reserve liabilities, Logan said on April 17. These future securities purchases “will have the same purpose as they did prior to the financial crisis”, she said.
The Fed’s
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