At the New York Fed, our mission is to make the U.S. economy stronger and the financial system more stable for all segments of society. We do this by executing monetary policy, providing financial services, supervising banks and conducting research and providing expertise on issues that impact the nation and communities we serve.
The Federal Reserve (Fed) implements monetary policy through an ample reserves framework, where a sufficient supply of reserves allows the federal funds rate and other short-term interest rates to be primarily controlled through administered rates set by policymakers. In this article, we provide insight into some of the tools the Fed uses to implement monetary policy, with a focus on recent changes to standing repo operations.
As the deepest and most liquid securities market worldwide, the U.S. Treasury market plays a critical role in the global economy. As Treasury Secretary Scott Bessent said in his remarks, “Maintaining a robust Treasury market—and strengthening it even further—is essential.”
In remarks in New Jersey on December 15, New York Fed President John C. Williams discussed the U.S. economy and how the Federal Reserve is working to achieve its dual mandate of maximum employment and price stability. He also provided his economic outlook.
New York Fed President John C. Williams visited Rochester and Syracuse, New York, in late September to gain insights on the economy of the cities and surrounding region. The two days of meetings, roundtable discussions, and site visits with local leaders highlighted key trends shaping the future of Central New York and the Finger Lakes region.
In remarks at a conference celebrating the centennial of the Central Bank of Chile on November 21, New York Fed President John C. Williams discussed the importance of inflation targeting in helping central banks achieve price stability and better economic outcomes, particularly after the onset of the COVID-19 pandemic. He also gave his views on inflation, employment, and monetary policy in the United States.
The Federal Home Loan Bank (FHLB) system was created almost a century ago and has evolved over time to play an important role in monetary policy implementation. It is a key participant in money markets, providing liquidity to thousands of financial institutions in the U.S. This article looks at why this system was created, how it is structured, and the composition of its balance sheet.
On Sunday, November 9, the Financial Times published a transcript of an interview with New York Fed President John Williams. In the interview, he discussed monetary policy, the economic outlook, and the Fed’s balance sheet and policy tools.
In remarks at the ECB Conference on Money Markets on November 7, New York Fed President John C. Williams discussed the frameworks and tools that central banks use to implement monetary policy. In particular, he talked about the Federal Reserve’s operational framework and balance sheet strategy, and he gave an update to the Fed’s transition to an ample level of reserves.
This is part of an ongoing educational series on nonbank financial institutions.
Nonbank financial institutions (NBFIs) play a critical role in private credit, which has recently become a key source of financing for corporations. In this article, we describe private credit and its recent growth, the role of NBFIs in the private credit ecosystem, and how private credit interacts with the Federal Reserve’s monetary policy, prudential supervision, and financial stability objectives.
This is part of an ongoing educational series on nonbank financial institutions.
Hedge funds are a category of nonbank financial institutions (NBFIs) that play a significant role in the U.S. financial system. Since they transact in a wide range of asset classes and are major counterparties of the largest banks, their activities increasingly affect market liquidity, price discovery, and overall market functioning. In this article, we discuss the role of hedge funds in the U.S. financial system, their growth, and their relevance to the Federal Reserve’s monetary policy, prudential supervision, and financial stability objectives.
