[Fed Meeting Minutes: Bank Reserves Remain Ample, Reserve Management Purchases Suspended] The minutes of the Federal Reserve meeting show that, in reviewing the money market conditions between the two meetings, the Open Market Operations Manager noted that money market conditions remained stable, the effective federal funds rate (EFFR) remained stable relative to the interest rate on outstanding reserves (IORB), and repurchase rates were on average slightly below the IORB rate. Decreasing demand for repurchase financing from dealers due to reduced securities inventories also pushed repurchase rates lower. While Treasury bill issuance has increased significantly since July, market absorption has been good, with limited impact on money market rates. The Operations Manager noted that bank reserves appear to remain within a range consistent with ample reserve supply. Taking into account money market conditions, the Open Market Operations Department's forecasts of reserve supply, and its assessment of reserve demand, the Department has suspended reserve management purchases (RMPs). The Operations Manager emphasized that there is no predetermined path for the implementation of RMPs, and the Department will continue to make decisions monthly to ensure that reserves remain within an ample range.
