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Roberto Perli is the manager of the System Open Market Account (SOMA) and a senior leader in the New York Fed\u2019s Markets Group. In his role, Roberto is responsible for implementing monetary policy at the direction of the Federal Open Market Committee (FOMC). Roberto is also a returning guest to the podcast, and he rejoins Macro Musings to talk about a recent speech he made titled, *Balance Sheet Reduction: Progress to Date and a Look Ahead.* Specifically, David and Roberto discuss the Fed\u2019s recent balance sheet activities, the basics and functionality of the overnight reverse repo facility, the importance of slowing down the Fed\u2019s balance sheet runoff, and much more.

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Transcript for this week\u2019s episode.

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Roberto\u2019s NY Fed profile

Roberto\u2019s Twitter: @R_Perli

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David Beckworth\u2019s Twitter:\xa0@DavidBeckworth

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Related Links:

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*Balance Sheet Reduction: Progress to Date and a Look Ahead* - Remarks by Roberto Perli at the 2024 Annual Primary Dealer Meeting, Federal Reserve Bank of New York

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Timestamps:

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(00:00:00) \u2013 Intro

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(00:04:49) \u2013 Breaking Down the Role of SOMA Manager

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(00:08:43) \u2013 Recapping the Fed\u2019s Balance Sheet Activities

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(00:11:04) \u2013 How to Think About Quantitative Tightening

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(00:13:19) \u2013 Breaking Down the Overnight Reverse Repo Facility

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(00:20:42) \u2013 Slowing Down the Runoff and the Future of QT

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(00:26:48) \u2013 How to Determine the Critical Level of Reserves

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(00:33:03) \u2013 The Structural Demand for Bank Reserves Over Time

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(00:38:55) \u2013 The Advantages of the Floor Operating System

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(00:47:49) \u2013 Reserve Supply Focus Moving Forward

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(00:49:44) \u2013 Outro