A former top Federal Reserve staffer said in a web posting Tuesday that a new central bank facility designed to help address market liquidity issues may be falling short of its potential, and that has implications for the looming campaign of monetary policy tightening.
Bill Nelson, now chief economist with the Bank Policy Institute financial industry group, was taking stock of the Fed’s Standing Repo Facility in the posting. The facility, adopted last summer, is designed to take in Treasury securities from eligible firms…
