Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

I would say that we may well be in a situation where the interest rate on excess reserves is the effective tool for controlling the federal funds rate, and there may be a spread. As Bill said, we are in the process of learning how this works, and it may well be the case that we need to push that interest rate on excess reserves very close to the federal funds rate.

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