US Market | Fed has sufficient reserves, strong rate control framework: Perli
Economic Times 1 hr ago·23 Sept 2026, 8:38 am
Fed official Roberto Peri said the Fed still has enough reserves and can keep short‑term rates under control. He noted that Treasury‑bill purchases are a tool that can be re‑started if banks need extra liquidity.
For investors, that signals the central bank is not in a hurry to tighten further and that the current policy framework remains stable. Sufficient reserves help keep money‑market rates low and support equity valuations, while flexible T‑bill buying can cushion any sudden funding stress.
Market participants will now watch upcoming Fed minutes, inflation data and any signals of a change in the repo or T‑bill program. A shift in liquidity policy could affect bond yields and risk‑on equity flows.
Excerpt from Economic Times
New York Fed official Roberto Perli said the Federal Reserve has maintained effective control over short-term interest rates and sufficient reserves. He said Treasury bill purchases remain flexible and could resume if liquidity conditions require support, while reserve forecasts remain reliable. The comments highlight…Read the original at Economic Times
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
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