Discussion Paper
Ripples in the Reserve Pool: Unveiling Liquidity Signals from the Federal Funds Market
Abstract: When the Federal Reserve shifted to an ample-reserves framework, many observers started to question the relevance of the fed funds market. With reserves ample or abundant and rates anchored by administered floors, interbank borrowing declined sharply, and the market appeared to serve mainly as an arbitrage venue for non-bank institutions.
https://doi.org/10.17016/2380-7172.4181
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Bibliographic Information
Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: FEDS Notes
Publication Date: 2026-10-16
Number: 2026-10-16-2