New York Fed System Open Market Account manager Perli said the Fed’s monetary
policy toolkit remains highly effective. The Fed has maintained strong
interest-rate control and kept reserves ample, and its Treasury purchases have
been operating smoothly. Recent liquidity injections are currently paused but
were not a preset path; the Fed could resume Treasury purchases if it judges
market liquidity needs them. Reserve management purchases (RMP) of Treasures
will be adjusted based on market liquidity conditions.