A core responsibility of the Open Market Trading Desk (the Desk) at the New York Fed is to closely monitor developments in financial markets. The Desk pays particular attention to those markets, such as money markets, in which it conducts open market operations to implement monetary policy at the direction of the Federal Open Market Committee (FOMC). For example, the overnight reverse repurchase agreement (ON RRP) facility and standing repurchase agreement facility (SRF) are executed in the market for repurchase agreements, or repos, to keep the federal funds rate—the FOMC’s policy rate—in its target range.
