According to Odaily Planet Daily, New York Federal Reserve Bank President John Williams stated that recent volatility in the overnight funding market indicates that the Fed's bank reserves are nearing their ideal level. In prepared remarks for a conference in Frankfurt on Friday, Williams said, "Based on the recent continued pressure in the repo market, and other increasing signs that reserves are shifting from 'ample' to 'adequate,' I expect we will soon reach an adequate level of reserves." Williams also stated that he expects short-term liquidity tools such as the Standing Repo Facility (SRF) to continue to play a "key role" in the money market to ensure the federal funds rate remains within the target range set by policymakers. He said, "I fully expect the SRF to continue to be used aggressively in this manner to curb upward pressure on money market rates." (Jinshi)