NEW YORK, March 25 The U.S. Federal Reserve's
committee of policy-setters has not yet decided to fully embrace
a new test facility for so-called reverse repurchase agreements
as a tool for conducting monetary policy in the future,
Philadelphia Fed President Charles Plosser said on Tuesday.
Addressing the ongoing testing of the Fed's reverse repo
facility, which has gone on since September, Plosser stressed
that the policy-setting Federal Open Market Committee, and not
the New York Fed's open markets desk, will make the final
decision on whether to formally adopt the facility.
He said he worries that investors have already concluded
that the facility will be adopted and used as a prime tool for
guiding market-wide interest rates, adding that is "not
(Reporting by Jonathan Spicer; Editing by Eric Walsh)