Operating Policy

Statement Regarding Open Market Operations

August 16, 2007

For the new reserve maintenance period beginning today, early estimates suggest that the Desk will need to provide reserves through RP operations on most days. Each day at its normal operating time of 9:30 a.m. and on Thursdays at 8:20 a.m., the Desk will re-evaluate whether it needs to arrange operations.

In addition, the Desk stands ready to arrange further operations as needed to facilitate trading at rates around the operating objective of 5-1/4 percent in reserve markets.