Open market operations during 1996

Gerald D. Cohen and Peter R. Fisher

Federal Reserve Bulletin, 1997, issue Jul, 565-574

Abstract: During 1996, the Trading Desk at the Federal Reserve Bank of New York managed reserve conditions with the objective of maintaining the federal funds rate around the level desired by the Federal Open Market Committee (FOMC). As was the case last year, the need for permanent reserve additions was relatively modest as demand for currency grew moderately and reserve requirements declined because of the continued spread of sweep programs at commercial banks. The decrease in operating balances of depository institutions at Reserve Banks had an impact on bank reserve management strategies and the Desk's choice of operations. The Desk paid close attention to the daily pattern of reserve demands and, by tailoring its operations accordingly, maintained funds trading close to the FOMC's desired rate.

Keywords: Open market operations; Monetary policy; Federal Open Market Committee; Federal funds market (United States) (search for similar items in EconPapers)
Date: 1997
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