To further increase its capacity to drain reserves through reverse repos, the Federal Reserve is also in the process of expanding the set of counterparties with which it can transact and developing the infrastructure necessary to use its MBS holdings as collateral in these transactions.
I have done so before in Hong Kong and Singapore, and I am proud that I can now add Melbourne to the list. It is also very pleasing that the Forum has successfully expanded beyond its Davos base, and made the Asia Pacific region an important part of its operations.