efficient. this type of facility represents an efficient tool from an operational and market - functioning standpoint as well. unlike desk operations conducted with fixed quantities, the desk wouldn ’ t need to estimate the appropriate amount of reverse repos to offer each day in order to absorb the quantity of reserve balances at the target rate. 16 with ioer and an overnight, fixed - rate, full - allotment reverse repo facility, counterparties would determine the level of participation based on daily demand for overnight investments at a fixed rate that ’ s judged consistent with the fomc ’ s overall policy stance. market forces will therefore determine how to allocate the federal reserve ’ s liabilities between depository institutions holding them as reserves and money market funds, gses, and other non - bank financial institutions holding them as reverse repos. the effectiveness of an overnight, fixed - rate, full - allotment facility in helping to control overnight money market rates will depend on a range of factors, including whether a sufficiently wide set of non - bank counterparties has access to the facility. following seven waves of counterparty expansions since 2009, the desk currently has 139 reverse repo counterparties, covering 94 of the largest 2a - 7 money market funds, 6 gses, 18 banks, and the 21 primary dealers. taken together, these institutions represent an estimated 25 percent of all overnight treasury tri - party repo volume. more counterparties could certainly be added, and we ’ re in the process of considering how best to proceed. the efficacy of the facility will also depend on factors such as the regulatory and balance sheet constraints of counterparties and the level of competition in the markets. however, the facility ’ s value in terms of monetary policy implementation wouldn ’ t necessarily be determined by the amount of usage. if the facility increases bargaining power for market participants, it could conceivably provide an effective floor for short - term rates, giving the desk tighter control of money market conditions even with usage of the facility that ’ s low on average. at its september 2013 meeting, the fomc unanimously approved a resolution that allowed the desk to start an operational test of fixed - rate, overnight reverse repos. 17 the exercise, which began on september 23 and is authorized to run until january 29, 2014, entails the conduct of a daily overnight, fixed - rate reverse repo auction in order to assess operational readiness to carry out such transactions. it therefore allows the desk, its wide

until the economy reaches conditions consistent with its assessments of maximum employment, and inflation has reached 2 percent and is on track to moderately exceed 2 percent for some time. there is still a long way to go before reaching maximum employment, and over time it should become clearer whether we have reached 2 percent inflation on a sustained basis. conclusion i began by saying that it ’ s nearly impossible to predict the future. the economy remains tied to the extraordinary and unpredictable nature of the pandemic. but with continued progress on the economic recovery and a reversal of some of the pandemic ’ s unusual dynamics, i anticipate that we will soon reach a time when business will be more like usual. i look forward to the q & a portion of today ’ s program, and very much look forward to seeing many 3 / 4 bis central bankers'speeches of you when we are able to be together again. 1 see hobijn, bart, and aysegul sahin ( 2021 ), “ maximum employment and the participation cycle, ” paper presented at the 2021 jackson hole economic policy symposium, august 27. 2 olivier armantier, fatima boumahdi, leo goldman, gizem kosar, jessica lu, giorgio topa, and wilbert van der klaauw, “ have consumers ’ long - run inflation expectations become un - anchored?, ” federal reserve bank of new york liberty street economics, september 24, 2021. board of governors of the federal reserve system, federal reserve issues fomc statement, december 16, 2020. 4 / 4 bis central bankers'speeches