March 26, 2014 / 12:35 AM / 4 years ago

Not foregone conclusion Fed will adopt US repo facility -Plosser

NEW YORK, March 25 (Reuters) - 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 guaranteed.” (Reporting by Jonathan Spicer; Editing by Eric Walsh)

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