Implementing Monetary Policy: Perspective from the Open Market Trading Desk
Lorie K. Logan
NY Fed, May 18, 2017
Thank you for inviting me to speak and for that kind introduction. For years I have had the privilege to be a part of the audience at these events, and it’s an honor to be asked to address the group.
Since the financial crisis, the Federal Reserve has used short-term interest rates and its balance sheet to achieve its policy objectives. In my remarks this evening, I will make some observations on the current approach to influencing short-term interest rates and the execution of operations by the New York Fed’s Open Market Trading Desk, and consider how these operations might evolve as the Federal Reserve eventually normalizes its balance sheet. I will also look back at our past experience, which may offer perspective as we prepare for what lies ahead. The views presented are mine alone and do not necessarily reflect those of the New York Fed or the Federal Reserve System.1The Federal Reserve’s Monetary Policy Implementation Framework Is Working Well