Q&A continues: Q: How high do you want to get...>

FED: Q&A continues:

Q: How high do you want to get IOER/EFFR? Movements in IOER as sign we are

reaching ample reserves?

- A: Goal is to keep them within the range. 5bps from the bottom and the top

isn't it. With ample reserves it's possible to bring the IOER up, so we are now

within the range I would say. What we're trying to do is get EFFR within the

range, the thing that matters for the economy. IOER just a tool to do that.

Q: Where do discussions stand on standing repo facility and re bill purchases as

you go through the year, will changes be preannounced?

A: When we make decisions about adjustment, we will be making them as early as

we can and as transparently as we can. Re standing repo, there may well be a

role for repo in this system even after we're at ample reserves level. We

haven't made a decision on standing repo. A range of views. Will return fairly

soon to this question. It was wise to wait - still seeing what that world looks

like. Seeing what the costs and benefits are. No urgency in making the decision,

we're still trying to find that stable reserves equilibrium.