Fed’s Potter Says New Repo Tool Should Play Central Role in Exit
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Simon Potter, the Federal Reserve Bank of New York’s markets group chief, said the Fed’s new reverse repurchase agreement tool probably will be a key part of how the central bank eventually tightens monetary policy.
Market “participants have indicated that they expect that a facility, if executed in full scale in the future, should be an effective tool for increasing the Federal Reserve’s control of short-term money market rates,” Potter said yesterday in a speech in New York. He is in charge of the System Open Market Account used in implementing monetary policy.