NY Fed’s Perli Sees Early Signs of Pressure in Money Markets

The manager of the Federal Reserve’s massive portfolio of securities said the central bank’s effort to reduce the size of its balance sheet is beginning to place pressure on the market for repurchase agreements.

That pressure likely means the Fed’s tools for controlling short-term interest rates will become increasingly important, Roberto Perli, manager of System Open Market Account at the New York Fed, said in prepared remarks Thursday.