Powell Says Fed Will Eventually Slow the Pace of Bill Purchases

The transcript discusses the smooth operation of Treasury bills and repo operations, which have ensured ample reserves and controlled the federal funds rate. A technical upward adjustment to administered rates was made to stabilize the federal funds rate. As reserves build, the role of active repo operations will decrease, with adjustments planned for the first half of the year. The transition will include smaller reserve management purchases, maintaining ample reserves without active repos. The balance sheet will expand gradually, reflecting currency demand. These measures support monetary policy implementation without changing its stance, with ongoing monitoring of money markets.

What measures are being implemented to support the efficient implementation of monetary policy?

What commitment does the Federal Reserve have regarding the transition to a longer run ample reserves regime?