Fed may need to buy more bonds than before crisis to manage U.S. rates: official

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Fed may need to buy more bonds than before crisis to manage U.S. rates: official
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The Federal Reserve may need to buy more government bonds than it did before the...

FILE PHOTO: The Federal Reserve Board building on Constitution Avenue in Washington, U.S., March 27, 2019. REUTERS/Brendan McDermid/File Photo

The Fed this year decided to indefinitely manage short-term interest rates by tweaking the interest it pays banks on excess money they keep at the central bank, a process that requires the central bank to keep a larger “balance sheet” and more bank reserves on hand than it did prior to the global financial crisis.

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