| JACKSON, Wyoming July 11
JACKSON, Wyoming July 11 Atlanta Federal Reserve
President Dennis Lockhart said on Friday the U.S. central bank
had not decided on its exact mix of tools to manage interest
rates in the future but that interest on excess reserves would
likely play a major role.
A redesigned federal funds program would remain important
and reverse repos, a broader program that could be used by money
market and other funds, would play a "supporting role."
At an economic conference Lockhart said he thought the
United States was "overbanked" with nearly 7,000 financial
institutions and that many would likely consolidate as
technology, regulation and other issues meant banking was no
longer a "mom and pop" operation and needed economies of scale.
(Reporting by Howard Schneider; Editing by James Dalgleish)