Fed’s Perli Says Won’t Be Long Before Fed Starts Buying Assets

Rising overnight funding costs are signaling that bank reserves are no longer abundant, and the US central bank “won’t have to wait long” before purchasing assets to sustain desired liquidity levels, according to the Federal Reserve Bank of New York’s Roberto Perli.

Several indicators, including higher money market rates, are providing “strong evidence that reserves are no longer abundant,” Perli, who oversees the central bank’s securities portfolio, said Wednesday in prepared remarks for a conference co-hosted by the New York Fed.

Perli, who runs the System Open Market Account, echoed remarks made earlier Wednesday by New York Fed President ...