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MNI BRIEF: Fed's Perli - Don’t Appear Close To Ending QT

Top New York Fed staffer says market commentary suggested investors would correctly interpret 50BP cut.

A top Federal Reserve Bank of New York staffer said Tuesday that reserves are still above the ample level and don’t appear to be close to the point when the Fed will end its program to roll off assets from its balance sheet.

The FOMC in May 2022 said it intends to stop balance sheet reduction when reserves are somewhat above the ample level. "For now, we don’t appear to be close to that point," said Roberto Perli, the head of the System Open Market Account responsible for implementing Fed monetary policy directions.

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A top Federal Reserve Bank of New York staffer said Tuesday that reserves are still above the ample level and don’t appear to be close to the point when the Fed will end its program to roll off assets from its balance sheet.

The FOMC in May 2022 said it intends to stop balance sheet reduction when reserves are somewhat above the ample level. "For now, we don’t appear to be close to that point," said Roberto Perli, the head of the System Open Market Account responsible for implementing Fed monetary policy directions.

Keep reading...Show less