Journal Article

Open market operations in the 1990s

Abstract: Open market operations--the purchase and sale of Treasury and federal agency securities--are the Federal Reserve's principal tool for implementing monetary policy. The objectives and conduct of open market operations have continued to evolve in the 1990s, partly in response to the way the Federal Open Market Committee implements monetary policy and explains it to the public. Also shaping operations have been changes in financial markets, including developments in the market for repurchase agreements and declines in the balances that depository institutions must hold at the Federal Reserve.

Keywords: Federal Open Market Committee; Open market operations;

JEL Classification: E52; E58;

https://doi.org/10.17016/bulletin.1997.83-11

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: Federal Reserve Bulletin

Publication Date: 1997-11

Volume: 83

Issue: Nov