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 Treasuries will be adjusted based on market liquid

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 Treasuries will be adjusted based on market liquidity conditions.