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

Mr. Chairman, if I could? One thing that President Lacker pointed out is that, if we operated more than once on the first day of the reserve maintenance period, we could create as much reserves as possible, and we’d probably do a better job of achieving the target rate on that first day. The cost of that, though, is that in subsequent days we might have a very low funds rate for the rest of the reserve maintenance period. Therefore, over the period as a whole we might have a rate that is below the target. So there is a tradeoff here.

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