Please allow me to summarize them now. The FOMC decided at its January meeting to continue to implement monetary policy in a regime with an ample supply of reserves—a regime often referred to as a floor system. 14 Such a system, which has been in place since late 2008, does not require the active management of reserves through daily open market operations.
Instead, with an ample level of reserves in the banking system, the effective federal funds rate will settle at or slightly above the rate of interest paid on excess reserves (IOER).