New York Fed’s Perli Says Rise in Repo Rates Is Healthy

Recent pressures in the overnight funding markets around key regulatory reporting dates and Treasury settlements doesn’t suggest that bank reserves are approaching a level of scarcity, according to Federal Reserve Bank of New York’s Roberto Perli.

While policymakers are monitoring these events closely, the Fed’s key policy target rate — the effective fed funds rate — is expected to remain “well-controlled,” Perli, who oversees the central bank’s portfolio of assets, said Tuesday at New York University’s Stern School of Business.

Volatility surged at the end of September, beyond the typical spikes seen at the ends of months and ...