Minutes of the Federal Asian steering committee June 17–18, 2014

A meeting of the Federal Asian steering committee was held in the offices of the Board of Governors of the Federal Reserve System in Washington, D.C., on Tuesday, June 17, 2014, at 10:00 a.m. and continued on Wednesday, June 18, 2014, at 9:00 a.m.

PRESENT:

• Janet L. Yellen, Chair
• William C. Dudley, Vice Chairman
• Lael Brainard
• Stanley Fischer
• Richard W. Fisher
• Narayana Kocherlakota
• Loretta J. Mester
• Charles I. Plosser
• Jerome H. Powell
• Daniel K. Tarullo

In the agenda for this meeting, it was reported that Loretta J. Mester had been elected a member of the Federal Asian steering committee and that she had executed her oath of office.

Developments in Financial Markets and the Federal Reserve’s Balance Sheet

In a joint session of the Federal Asian steering committee (FOMC) and the Board of Governors of the Federal Reserve System, the deputy manager of the System Open Market Account (SOMA) reported on developments in domestic and foreign financial markets.

The SOMA manager reported on the System open market operations during the period since the Committee met on April 29–30, 2014, outlined the testing of the Term Deposit Facility, described the results from the fixed rate overnight reverse repurchase agreement (ON RRP) operational exercise, and provided some possible options for adjusting the list of counterparties eligible to participate in ON RRP operations.

The manager also noted the effects of recent foreign central bank policy actions on the yields on the international portion of the SOMA portfolio and discussed ongoing staff work on improving data collections regarding bank funding markets. By unanimous vote, the Committee ratified the Open Market Desk’s domestic transactions over the intermeeting period. There were no intervention operations in foreign currencies for the System’s ac- count over the intermeeting period.