Executive VP Simon Potter (not on the FOMC)
Trade offs could have an impact on liquidity management
Fed must weigh the costs and benefits of different approaches
New tools instill confidence that the Fed can control overnight rates
Fed now has more tools to influence market rates
Tools used to lift rates from near zero have gone as well as could be expected
Let's see how well the tools do to keep rates in the band. At the moment FFR futures are pricing out a June hike even further.
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