3 ms·
The Fed Funds rate is still the reference for policy but the Fed has been using a new framework called "ample reserves" since the latter part of 2020. See: "H
by bogomipz 5y ago
The Fed Funds rate is still the reference for policy but the Fed has been using a new framework called "ample reserves" since the latter part of 2020.
See:
"How Does the Fed Influence Interest Rates Using Its New Tools?"
https://www.stlouisfed.org/open-vault/2020/august/how-does-fed-influence-interest-rates-using-new-tools https://www.stlouisfed.org/open-vault/2020/august/how-does-f...
- nickles 5y ago> the Fed has been using a new framework called "ample reserves" since the latter part of 2020 It’s been using an ample reserve regime for much longer than that. The Fed received congressional approval to implement a floor system around 2007 (it had been seeking it since the 80’s, I think), and has used it since the GFC. Are you possibly referring to the average inflation targeting framework?
- bogomipz 5y agoIndeed I meant 2007, 2020 was the year the reserve requirements were adjust to a zero ratio which I was responding to in the earlier post.