Fed’s Williams Says Bank Reserves Close to Key ‘Ample’ Level

Federal Reserve Bank of New York President John Williams said recent volatility in overnight funding markets is a sign the US central bank is close to reaching its desired level of bank reserves.

“Based on recent sustained repo market pressures and other growing signs of reserves moving from abundant to ample, I expect that it will not be long before we reach ample reserves,” Williams said Friday in remarks prepared for a conference in Frankfurt. Repo is a reference to the market for short-term repurchase agreements.

The New York Fed chief said he expects short-term liquidity facilities, such as the ...