Fed’s Logan: Eventual treasury purchases likely to be larger than before financial crisis

Fed’s Logan speech titled "Observations on Implementing Monetary Policy in an Ample-Reserves Regime" can be read here in full:

Full Speech

Thank you for the kind introduction. While preparing these remarks, I learned that the Money Marketeers organization was founded by Dr. Marcus Nadler, a gifted educator who challenged market participants to deepen their understanding of the forces that move markets, and that it was born out of a popular lecture series he regularly held at NYU.

This spirit of continual learning is a core value at the Federal Reserve, and that has been particularly important in recent years as the Fed has been operating in a new monetary policy implementation regime.

NY Fed will study money markets to see how they operate with lower level of bank reserves in the system.
Ample reserves' policy to keep rates stable if fed needs to supply liquidity, buy assets to support economy.
Bank borrowing rates above interest on excess reserves does not mean reserves are not well supplied.
U.S. bank reserves are ample, above system's demands.
Fed will eventually need to buy treasuries to offset decline in reserves NY fed might have to respond to unanticipated changes in reserves by conducting repo operations.

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