Journal Article

Is the Fed being swept out of (monetary) control?

Abstract: What are \\"reserves,\\" and why do banks hold them? What are \\"sweep accounts,\\" and how do they work? What?s the relationship between the two? And what?s the Fed?s role in all of this? In this article, Jeff Wrase considers the effect sweep accounts have had on the market for bank reserves and on the Fed?s job of managing reserves in the banking system. He also looks at changes the Federal Reserve has made to keep the federal funds rate from becoming too volatile as the use of sweep accounts spreads

Keywords: Bank reserves; Monetary policy - United States;

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Business Review

Publication Date: 1998

Issue: Nov

Pages: 3-12