As the central bank’s balance sheet shrinks, the standing repo facility will likely take on greater importance in capping borrowing costs, Roberto Perli says.

Indeed, if the uncertainty is great enough, the optimal level of reserves can exceed the cutoff for abundant reserves under no uncertainty. That is, uncertainty can imply that it is optimal to supply ...

Federal Reserve Governor Christopher Waller said markets are demanding higher Treasury yields due to concerns about tax cuts widening the federal budget deficit.