The Minutes of John Williams on lending facility https://minutesof.com/john-williams/on/lending-facility/ Everything John Williams has said on lending facility: 2 verbatim quotes, each with a timestamp and a link to the recording it came from. en Mon, 31 Aug 2026 13:11:34 +0000 Williams explains lending facilities cap the spread, mitigating the precautionary motive for holding reserves. https://minutesof.com/q/ff95ab67-b363-42c3-a065-34a6848f16ab/ https://minutesof.com/q/ff95ab67-b363-42c3-a065-34a6848f16ab/ “With a lending facility, the choice of the optimal supply of reserves takes into account the fact that the spread is capped at the lending rate.” — NY Fed speeches lending facility Williams explains lending facility rate relative to target spread determines precautionary reserve needs and f https://minutesof.com/q/5e59c6d4-9898-44c9-84b7-8dc40e7ba91c/ https://minutesof.com/q/5e59c6d4-9898-44c9-84b7-8dc40e7ba91c/ “This effect is greatest when the lending rate is closer to the target spread. On the other hand, if the lending rate is very high relative to the target spread, then the facility is rarely used, and the optimal supply of reserves is near what it would be absent a facility.” — NY Fed speeches lending facility