The Federal Reserve Board on Monday proposed a program to sell term deposits to banks to help mop up some of the $1 trillion in excess reserves in the U.S. banking system.

Fed Chairman Ben S. Bernanke is preparing tools and strategies to soften or neutralize the inflationary impact from the biggest monetary expansion in U.S. history. Central bankers are also conducting tests of reverse repurchase agreements and discussing the possibility of asset sales.

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