Fed tweak shows difficulty of trimming balance sheet

Financial Times/Robin Wigglesworth/6-14-2018

“They have been perturbed that it has drifted up from the central point of the corridor,” said Larry Hatheway, chief economist at Gam, a Swiss asset manager. “Central banks don’t want to be seen to not be in control.”

USAGOLD note:  Wigglesworth in this article reinforces the notion that the Fed is encouraging commercial banks to mobilize excess reserves to keep the federal funds rate within the intended target range at or below 1.95%.

For the record:   Federal Reserve Implementation Note issued June 13, 2018

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