NEW YORK - New York Federal Reserve President John Williams said Thursday the central bank is learning as it works to increase liquidity in the banking system and that it will adjust its approach as needed.
There are still a “number of steps needed” to spread reserves out more broadly throughout the banking system after a repo operation, he said. The New York Fed calmed money markets and stabilized borrowing rates by injecting billions of dollars of cash into the financial system through daily operations in the market for repurchase agreements, or repos.
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