Gold 10 data, August 6th News, New York Fed published an article on Tuesday saying that the Fed's balance sheet is a 'key tool' for supporting the para politikası objectives of the FOMC and 'rarely supports financial stability'. The Fed mainly sets its para politikası stance by adjusting the target range for the federal funds interest rate, but the FOMC has also previously supported the overall financial condition by purchasing U.S. Treasury bonds and agency mortgage-backed securities (MBS), especially when the interest rate is around zero. Such purchases have also been used to address market dysfunction, such as during the disruption of the financial markets caused by the COVID-19 pandemic in March 2020. Christian Cabanilla, Eric LeSueur, and Josh Younger of the New York Fed wrote that the FOMC also instructed the Fed to reduce the size and holdings of its balance sheet to a level 'consistent with the effective and efficient implementation of para politikası under an ample reserve regime'.
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New York Fed: Fed's balance sheet is a key tool for para politikası and financial stability
Gold 10 data, August 6th News, New York Fed published an article on Tuesday saying that the Fed's balance sheet is a 'key tool' for supporting the para politikası objectives of the FOMC and 'rarely supports financial stability'. The Fed mainly sets its para politikası stance by adjusting the target range for the federal funds interest rate, but the FOMC has also previously supported the overall financial condition by purchasing U.S. Treasury bonds and agency mortgage-backed securities (MBS), especially when the interest rate is around zero. Such purchases have also been used to address market dysfunction, such as during the disruption of the financial markets caused by the COVID-19 pandemic in March 2020. Christian Cabanilla, Eric LeSueur, and Josh Younger of the New York Fed wrote that the FOMC also instructed the Fed to reduce the size and holdings of its balance sheet to a level 'consistent with the effective and efficient implementation of para politikası under an ample reserve regime'.