Answer on reserves continued: - A: When we......>

FED: Answer on reserves continued:

- A: When we see we reach that level, we will gradually reduce our purchases, to

meet trend growth in liabilities. At some point will increase minimum bid rate

in repo ops. In terms of the desired level: we know they will move up and down

over the year, will need to be high enough to remain ample (including peak of

tax season). No lower than in early September, around $1.5trn. That's the bottom

end of the range. Most of the time moving in a range substantially higher than

that, but not going below that. Until fed funds rate levels out. Prepared to

adjust repo operations as needed. Will provide more details as we go.