Federal Reserve Vice Chairman Jefferson emphasized the central bank's readiness to employ all available tools to achieve its objectives, as stated in a recent consensus statement. The primary policy tool remains the federal funds rate, with a reduced likelihood of reaching the effective lower bound. Jefferson noted that while the Federal Reserve's balance sheet is shrinking in an orderly fashion, there is some disagreement among members regarding its size. The determination of ample reserves will be a collective decision by the Federal Open Market Committee.