Today, being in an ample-reserves regime, the Fed operates on a different segment of the demand curve and uses different tools, as illustrated in the right panel of figure 4.
- 10 Technical Adjustments to the Supply of Reserves: A Case Study Although active management of the supply of reserves is not, by design, a feature of an ample-reserves regime, there are times when the Fed may take steps to adjust the supply of reserves to support interest rate control.