Dudley seeks to 'dispel misconceptions' on possible new Fed tool
NEW YORK, Sept 23
NEW YORK, Sept 23 (Reuters) - The Federal Reserve is considering adopting a possible new reverse repurchase facility not to foreshadow a change in monetary policy but to help the U.S. central bank adjust policy when the time is right, and to get a better grip on overnight interest rates, the head of the New York Fed said on Monday.
"I want to dispel any misconceptions about why we are doing this testing," said William Dudley, president of the Fed branch that is testing and would run the facility, talk of which surfaced in minutes of the Fed's July policy meeting.
"The introduction of this facility is not a precursor to a change in the stance of monetary policy," he said in a speech. "Instead, the goal of this new facility is to improve our control over overnight interest rates to aid us in the implementation of monetary policy."
- Google bus blocked in San Francisco gentrification protest
- Thai PM urges protesters to take part in election |
- North Korea's 'reign of terror' worries South's leader
- Obama, Castro shake hands as world says farewell to peacemaker Mandela |
- Rare Singapore riot forces soul searching over foreign workers