$32.99 (C) Author: John T. Woolley, University of Washington; Date Published: July 1986; availability: Available ; format: Paperback; isbn: 9780521312479; Rate & review $ 32.99 (C) Transcripts and other historical materials, FOMC Longer-Run Goals and Monetary Policy Strategy (PDF), Communications Policies: Furthermore, the U.S. Treasury's General Account (TGA) at the Federal Reserve, which the Treasury uses to receive taxes and proceeds of Treasury auctions and to process the government's outlays, increased substantially. In March and April, Federal Reserve notes grew faster than normal, partially in response to the COVID-19 pandemic, and reached $1.9 trillion, an increase of $144 billion from the beginning of the year. In connection with the changes in the target range, the Federal Reserve reduced the interest paid on reserve balances and decreased the interest rate offered on overnight reverse repurchase agreements at the two March meetings. For more information, see the box "Federal Reserve Actions to Ensure Smooth Functioning of Treasury and MBS Markets." As of June 3, all repos outstanding had declined to $212 billion, lower than the amount outstanding early in the year, amid substantial increases in reserves and improved funding market conditions. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum-employment and price- stability goals. Additionally, several nonreserve liabilities increased. While the yields on long-maturity Treasury securities initially dropped sharply, in mid-March they started to increase in the face of these strong selling pressures (figure A). Return to text, 22. Main Menu Toggle Button Sections Search Toggle Button Search Search Submit Button Submit The expansion of total assets from the outright purchases and other actions resulted in reserve balances of $3.3 trillion, an increase of $1.7 trillion from the beginning of the year. Furthermore, to address strains in short-term U.S. dollar funding markets, the Federal Reserve Bank of New York's Open Market Desk expanded its offerings of overnight and term repo operations. In September 2019, the Federal Reserve started purchasing Treasury bills and conducting term and overnight repo operations to ensure the supply of reserves would remain ample and help forestall the possibility of money market pressures that could adversely affect policy implementation. The Federal Reserve adopted an accommodative monetary policy during the late stages of the bear market that began in late 2000. Return to text, 7. Expansionary monetary policy’s aim is to make it easier for individuals and companies to borrow and spend money – actions that all stimulate the economy. Beginning in mid-March, the Committee announced it would reinvest all principal payments from the Federal Reserve's holdings of agency debt and agency MBS back into agency MBS. The amount of repos outstanding reached a peak of $442 billion in mid-March. Branches and Agencies of Foreign Banks, Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks, Senior Loan Officer Opinion Survey on Bank Lending Practices, Structure and Share Data for the U.S. Offices of Foreign Banks, New Security Issues, State and Local Governments, Senior Credit Officer Opinion Survey on Dealer Financing Terms, Statistics Reported by Banks and Other Financial Firms in the United States, Structure and Share Data for U.S. Offices of Foreign Banks, Financial Accounts of the United States - Z.1, Household Debt Service and Financial Obligations Ratios, Survey of Household Economics and Decisionmaking, Industrial Production and Capacity Utilization - G.17, Factors Affecting Reserve Balances - H.4.1, Federal Reserve Community Development Resources, FOMC Communications related to Policy Normalization, History of the FOMC's Policy Normalization Discussions and Communications, Interest on Required Reserve Balances and Excess Balances, Overnight Reverse Repurchase Agreement Facility, Money Market Mutual Fund Liquidity Facility, Secondary Market Corporate Credit Facility, Term Asset-Backed Securities Loan Facility, Paycheck Protection Program Liquidity Facility, Temporary Foreign and International Monetary Authorities (FIMA) Repo Facility, Federal Reserve's Work Related to Economic Disparities. 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