Glossary Term

    Ample Reserves

    By Updated

    The Federal Reserve's operating regime since 2008, in which the level of bank reserves at the Fed is held high enough that overnight rates are controlled administratively (through IORB and ON RRP) rather than through small reserve-supply operations. When reserves run low relative to demand, the system exits ample-reserves territory, repo rates spike, and the MOVE Index tends to rise.

    What Ample Reserves Is

    The Federal Reserve's operating regime since 2008, in which the level of bank reserves at the Fed is held high enough that overnight rates are controlled administratively (through IORB and ON RRP) rather than through small reserve-supply operations. When reserves run low relative to demand, the system exits ample-reserves territory, repo rates spike, and the MOVE Index tends to rise.

    Where Ample Reserves Appears in TBL Research

    Ample Reserves is one of the money markets and fed plumbing that TBL tracks. For how it fits the broader framework, see Bitcoin and Global Liquidity.

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