New York Federal Reserve's Perli says the Federal Reserve's interest rate control toolbox remains very effective

The manager of the New York Fed System Open Market Account, Perli, stated that the Federal Reserve's monetary policy tools remain highly effective. "We have maintained very strong interest rate control, kept reserves within an ample range, and our Treasury purchases have proceeded smoothly," said Perli. He also indicated that the Fed's recent actions to add liquidity to the financial system (currently on pause) are not on a predetermined path, suggesting that if the Fed believes market liquidity needs support, it may purchase Treasuries again. He further noted that so-called Reserve Management Purchases (RMP) of Treasuries will be adjusted according to market liquidity needs.