PrintNY Fed's Perli: Fed will respond as needed to changes in Treasury cash management
BY Reuters | ECONOMIC | 12:13 PM EDTMay 19 (Reuters) - The Federal Reserve will respond as needed with its monetary policy operations to any changes in how the Treasury Department manages a large account of cash currently parked at the central bank, Roberto Perli, the Federal Reserve Bank of New York official responsible for implementing monetary policy, said Tuesday.
The "last thing" the Fed wants to do is tell the Treasury how to manage its Treasury General Account and what the government does will be taken as "given" by the Fed. He noted that if the TGA account were smaller due to the Treasury putting its funds into the repo market, it could allow for a smaller Fed balance sheet. (Reporting by Michael S. Derby, Editing by Franklin Paul)
