Fed Adjusts How It Raises Short-Term Rates to Keep Them Anchored; Move comes as short-term interest rates have been rising amid a boost in Treasury bill issuance

[...]by the Fed's May 1-2 meeting, the rate had moved toward the upper bound of its target range, which was then between 1.5% and 1.75%, according to . [...]the Fed has set the IOER rate at the top of the range. The Fed is eager to ensure that increases to the fed-funds rate continue to influen...

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Bibliographic Details
Published inWSJ Pro. Central Banking
Main Author Burne, Katy
Format Trade Publication Article
LanguageEnglish
Published New York Dow Jones & Company Inc 13.06.2018
Subjects
Carpenter, Seth
Central banks
Commercial banks
Federal Reserve monetary policy
Home loans
Interest rates
Investment advisors
Money markets
Money supply
Powell, Jerome
Repurchase agreements
Short term
Treasuries
Treasury bills
United States > US
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Summary:[...]by the Fed's May 1-2 meeting, the rate had moved toward the upper bound of its target range, which was then between 1.5% and 1.75%, according to . [...]the Fed has set the IOER rate at the top of the range. The Fed is eager to ensure that increases to the fed-funds rate continue to influence overall money-market rates in stable and predictable ways. [...]repos--which are different from the Fed's reverse repos--and Treasury bills now offer higher yields than before to the main lenders in the fed-funds market, the Federal Home Loan Banks, independently chartered financial institutions created by Congress to bolster U.S. housing finance.