The way the Federal Reserve has conducted U.S. interest rate policy for almost two decades is up for review by one of the task forces central bank Chairman Kevin Warsh has launched, though a full return to how it managed rates prior to the global financial crisis appears to be a long shot, the new Fed leader told Congress on Tuesday.
Warsh, in his first congressional appearance since taking the reins at the Fed in late May, told the House Financial Services Committee that a review of policies governing the Fed's $6.8 trillion balance sheet would also look at the so-called ample-reserves regime that requires it to maintain large holdings of bonds.
