New York Fed Open Market Account manager Perli said reserve-management purchase
operations have no preset path; the Desk can raise or cut purchases depending on
money-market conditions. She said the Desk is ready to implement any
balance-sheet or rate-control changes the Committee may decide after Fed chair
Kevin Warsh appointed a working group on the Fed’s balance sheet. The Fed began
reserve-management purchases in December to offset an expected sharp April
Reserve drain from tax inflows into the Treasury general account, which reduce
banking system reserves as Treasury balances at the Fed rise.
