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To hit the target federal funds rate given in the FOMCs policy directive, does the account manager adjust the demand for reserves, the supply of
To hit the target federal funds rate given in the FOMCs policy directive, does the account manager adjust the demand for reserves, the supply of reserves, or both? What monetary policy tool does the account manager use to hit the target federal funds rate? On most days, does the trading desk at the Federal Reserve Bank of New York carry out dynamic open market operations or defensive open market operations?
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