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Overview: Mon, May 20

Daily Agenda

Time Indicator/Event Comment
07:30Bostic (FOMC voter)
Appears on Bloomberg television
08:45Bostic (FOMC voter)Gives welcoming remarks at Atlanta Fed conference
09:00Barr (FOMC voter)Speaks at financial markets conference
09:00Waller (FOMC voter)
Gives welcoming remarks
10:30Jefferson (FOMC voter)
On the economy and the housing market
11:3013- and 26-wk bill auction$70 billion apiece
14:00Mester (FOMC voter)
Appears on Bloomberg television
19:00Bostic (FOMC voter)Moderates discussion at financial markets conference

US Economy

Federal Reserve and the Overnight Market

Treasury Finance

This Week's MMO

  • MMO for May 20, 2024

     

    This week’s MMO includes our regular quarterly tabulations of major foreign bank holdings of reserve balances at the Federal Reserve.  Once again, FBOs appear to have compressed their holdings of Fed balances by nearly $300 billion on the latest (March 31) quarter-end statement date.  As noted in the past, we think FBO window-dressing effects are one of a number of ways to gauge the extent of surplus reserves in the banking system at present.  The head of the New York Fed’s market group earlier this month highlighted a few others, which we discuss this week as well.  The bottom line on all of these measures is that any concerns about potential reserve stringency are still a very long way off.

Political Pressure

Robert Black

Mon, March 28, 1988

I think that it was the very hot political environment that made us reluctant to {target the funds rate}. Y ou know, interest rates were getting pretty high about that time. There was a lot of pressure on us and we knew that we had to do something. And we had to make it palatable so we didn’t get shot out of the water as soon as we began to move. I think--1don’t know if others would agree--that’s why we did it at that time. I thought that we would end up targeting the money supply; but I think most of the people in the room really thought it was a way that they could get the federal funds rate up more than they otherwise could get away with. in that kind of highly charged political environment. That’s the way that I read it. I don’t know; Jerry {Corrigan} or some of the others who were here might see it somewhat differently.

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MMO Analysis