Williams says the fed funds rate has been outside target range on only one day since January 2019.
“since the formal adoption of the current ample reserves framework in January 2019, the effective federal funds rate has been outside of the target range on only one day, in September 2019 ( Panel 1 ).”
Williams notes the federal funds rate has been outside target range on only two days since December 2008.
“since December 2008, the EFFR has been outside of the target range on only two days.”
Williams says ample reserves are substantially higher than the $1.5 trillion that proved insufficient in 2019.
“But we also know it is substantially larger than the $1.5 trillion level to which reserves dipped in September 2019, when they evidently became less than ample.”