By Michael S. Derby
NEW YORK (Reuters) – Even with some recent bouts of volatility, it appears money market liquidity levels still remain robust, a top New York Federal Reserve official said on Tuesday.
While the volatility that struck markets at the end of September is something that argues for central bankers to keep a close eye on markets, even with the churn, “I want to make clear that there is considerable evidence that reserve supply remains abundant – quarter-end pressures do not appear to be induced by a scarcity of reserves,” said Roberto Perli, who manages the implementation of monetary policy at the Federal Reserve Bank of New York, in the text of a speech.
“Although we are monitoring events closely, there are few obvious and foreseeable risks to our continuing to implement monetary policy efficiently and effectively” at the command of the rate setting Federal Open Market Committee, he said.