Fed's Waller says ample reserves level essentially achieved

By Michael S. Derby

NEW YORK, Oct 16 (Reuters) - Federal Reserve Governor Christopher Waller said Thursday the central bank is effectively at the ample reserve level, which suggests the central bank’s balance sheet process may not have much more space to run.

When it comes to the level of reserves that are needed in the financial system, Waller said “we’re basically back to where we think we should be” given the draw down of bond holdings. He told a gathering held by the Council on Foreign Relations the Fed’s next big balance sheet decision will be on the composition of its holdings.