> Does this move mean that the fed is trying to keep its benchmark rate too low and absent market forces it would be much higher? Fed used to maintain a corrid

> Does this move mean that the fed is trying to keep its benchmark rate too low and absent market forces it would be much higher? Fed used to maintain a corridor system, in that they would intervene if effective fed funds went higher or lower than their target. They moved to a floor system, in which they attempted to set a single rate by paying banks interest on reserves (IOER) held at the Fed. For roughly a decade, this worked (a certain arbitrage helped convert this rate from a floor into a ceiling). Recently, effective fed funds has risen above IOER, but Fed was not conducting reverse repo operations to push this down.