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.
