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Fed conducts its first reverse repo post-hike

The Federal Reserve started the market process of raising interest rates on Thursday, and one expert called the so-called reverse repo a clear success.

"I am actually quite pleased with these results, I've monitored these and I think it worked as hoped for," Richard Fisher, former president of the Federal Reserve Bank of Dallas, told CNBC's "Power Lunch" on Thursday. "They have identified the counterparties ... they are executing well. This first day was a very important thing; I'm quite proud of the New York desk."

Richard Fisher
Katie Kramer | CNBC
Richard Fisher

According to the Fed, the reverse repo facility is a supplement that helps control the federal funds rate and keep it in the target range set by the FOMC.

The Fed "use the interest on excess reserves as the ceiling, the interest on the overnight repo facility as the floor, and try to get fed funds somewhere in between," Fisher explained. "That's sort of where the funds have traded this morning at around 35 basis points."