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NEW ORLEANS, May 9 (Reuters) - The Federal Reserve's longstanding primary tool to conduct monetary policy is not the right one to use in the years ahead, a top U.S. central banker said on Friday, suggesting the federal funds rate could be replaced.
"It's my opinion that the fed funds rate is not the right tool going forward," Dallas Fed President Richard Fisher told reporters. "I'd like to keep it in the toolkit," he added. "But we've been working with several other tools" such as term repurchase programs, overnight reverse repos, and interest on excess reserves.
"That is a study at work as to what is the right way to anchor the yield curve and affect short term interest rates," Fisher added. (Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)