The Teller Window
A view into the work of the New York Fed
August 8, 2024

Monetary Policy Implementation in Practice Today

Icons of a central bank, money, and a piggybank on a violet background with the words 'Recent developments to show how the Fed's tools have worked in practice' and 'Summer Reading'

In recent articles, we introduced the Fed’s policy implementation framework, the role of the Fed’s balance sheet, and the Fed’s standing liquidity facilities. In this article, we use those key concepts to discuss recent developments in monetary policy implementation and how the Fed’s tools work in practice.

August 7, 2024

The Federal Reserve’s Standing Liquidity Facilities

Icons of a central bank, money, and a piggybank on a green background with the words 'The Fed's standing liquidity facilities' and 'Summer Reading'

An ample supply of reserves—consistent with the Fed’s “floor system”—and the smooth functioning of funding markets are critical to effectively implement monetary policy. Market disruptions occasionally require the rapid provision of additional liquidity. One way to do this is through open market operations conducted with primary dealers, in which the Fed increases the reserve supply either temporarily or more permanently.

August 6, 2024

The Role of the Federal Reserve’s Balance Sheet in Monetary Policy Implementation

Icons of a central bank, money, and a piggybank on a gold background with the words 'The role of the Fed's balance sheet' and 'Summer Reading'

The Fed’s balance sheet, like any financial balance sheet, is a record of the assets acquired—either through open market operations or backstop lending—and the liabilities issued to fund those assets. So, it can be thought of as a record of monetary policy and other actions the Fed took to achieve its “dual mandate” and other responsibilities. In this article, we discuss the evolution and role of the Fed’s balance sheet in monetary policy and its implementation.

August 5, 2024

The Federal Reserve and its Monetary Policy Implementation Framework

Icons of a central bank, money, and a piggybank on a blue background with the words 'The Fed's implementation framework overall' and 'Summer Reading'

The Federal Reserve System is the central bank of the United States. Its key entities are the Board of Governors, which is an independent federal government agency, 12 regional Federal Reserve Banks, and the Federal Open Market Committee (FOMC). The FOMC includes members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four other regional Reserve Bank presidents who serve on a rotating basis. You might hear these entities more often referred to collectively as “the Fed,” for short.

Summer Reading on Monetary Policy Implementation

Icons of a central bank, money, and a piggybank on a blackboard background with the words 'Summer Reading'

In the spirit of the summer season, the New York Fed’s Open Market Trading Desk (the Desk) thought it would contribute something to your summer reading list.

August 1, 2024

Conference on Cyber Risk to Financial Stability Explores Evolving Threats and New Approaches to Resilience

Earlier this year, the New York Fed and Columbia University’s School of International and Public Affairs (SIPA) hosted the fifth annual State-of-the-Field Conference on Cyber Risk to Financial Stability. Since 2017, this collaboration between the New York Fed and SIPA has brought together practitioners from across cyber security and finance to focus on three central questions: What are we learning about cyber risk to financial stability? What are we doing? And what’s next?

Posted in Technology | Permalink
July 22, 2024

How Nonprofits Drive Economic Activity in New York’s North Country

On our recent regional visit to New York’s North Country, we heard from stakeholders that delivering essential social services can be a major challenge due to the area’s vast geography and low population density, and that the nonprofit sector plays a critical role in addressing this issue. Building on our earlier report, this article examines how nonprofits support low- and moderate-income communities in both small towns and larger municipalities across the North Country.

July 5, 2024

Key Takeaways from President Williams’s Speech on Managing Policy Amid Uncertainty

New York Fed President John C. Williams delivered the 4th Suresh Tendulkar Memorial Lecture at the Reserve Bank of India in Mumbai on July 5, 2024. In his remarks, he discussed the key principles of inflation targeting strategies that have proven foundational in helping the Fed and other central banks manage extreme uncertainty. These principles include the need for central banks to own the responsibility for price stability and have independence to act to achieve it; transparency and clear communication of goals, including an explicit numerical inflation target; and well-anchored inflation expectations.

June 26, 2024

Unique Geography, Common Challenges: Regional Visit Reflects Varied Aspects of North Country Economy

New York Fed President John C. Williams traveled to the North Country region of upstate New York last month to hear from stakeholders about local economic conditions. He met with government officials, business owners, veterans and military families, and nonprofit and community leaders during this two-day Second District regional visit.

June 24, 2024

Why Inflation Expectations Matter: Celebrating 10 Years of Our Survey of Consumer Expectations

In this recurring column, Kartik Athreya, the New York Fed’s Director of Research, draws connections between broader economic policy issues and our everyday lives.
 
Expectations shape behavior. That’s why the Survey of Consumer Expectations, now in its 10th year, is such an important tool for central bankers. The monthly survey, produced by our Center for Microeconomic Data, has three main components: inflation expectations, labor market expectations, and household finance expectations. While all these expectations are important, I’ll focus here on inflation expectations, and how they shape people’s actions.

About

The Teller Window is a publication featuring expert knowledge and insight from the New York Fed, including thoughts and perspectives from senior leaders. It offers a deep look at issues that matter to the Federal Reserve’s Second District and the nation.

Articles on the Teller Window focus on the people and programs that help the New York Fed support the U.S. economy. They are written for a wide audience with the aim of illustrating what we are doing and why it matters. Stories include editorials, interviews, explainers, and reports on events and trends in our communities and region. The Teller Window is edited by the Communications and Outreach Group on behalf of the New York Fed. Separately, for analysis from New York Fed economists working at the intersection of research and policy, please see Liberty Street Economics.

The New York Fed began publishing on the Teller Window in November 2022. Articles with dates earlier than November 2022 were originally published by the New York Fed on Medium.

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