Fed Balance-Sheet Decision Cements Funds Rate as Preferred Tool
The Federal Reserve’s decision to end its balance-sheet runoff after a drop in bank reserves suggests officials are doubling down on the federal funds rate as the primary tool to...
By Alex Harris · Bloomberg Markets
The Federal Reserve’s decision to end its balance-sheet runoff after a drop in bank reserves suggests officials are doubling down on the federal funds rate as the primary tool to conduct monetary policy and help assess liquidity in the financial system.