NY Fed's Williams says central bank has tools to control short-term rates
May 3 (Reuters) - The Federal Reserve has the tools it needs to control short-term interest rates at a time when reserves are abundant and rates are drifting lower, New York Fed Bank President John Williams said on Monday.
The Fed can lift the interest rate it pays on excess reserves, known as IOER, or the rate it pays on reverse repurchase agreements, which give financial firms a place to temporarily park cash, Williams told reporters. Those adjustments would not be viewed as a change in monetary policy, he said. (Reporting by Jonnelle Marte; Editing by Leslie Adler)
