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Fed's Lockhart says exit policy mix not set
July 11, 2014 / 8:55 PM / 3 years ago

Fed's Lockhart says exit policy mix not set

JACKSON, Wyoming July 11 (Reuters) - 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)

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