The higher official says that the Federal Reserve is “completely ready” to help stabilize the market if necessary

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Digest opened free editor

According to one of the senior officials of the central bank.

“The markets are continuing to work well” and that “we do not see liquidity fears in general,” said Susan Collins, head of the Federal Reserve in Boston. But she said that the central bank “has tools to address concerns about the work of the market or liquidity if it appears.”

“We had to spread very quickly and various tools,” the Financial Times told the Financial Times, referring to previous interventions to address chaotic conditions in the markets. “We will be completely ready to do this as needed.”

Collins comes amid a week of severe turmoil in the American market after President Donald Trump launched a global trade war, raising fears of stagnation. The sale that started in the shares of Wall Street last week has now hanged the Treasury market of 29 Trugta, which is at the heart of the global financial system.

Boston’s Federal Reserve Chairman spoke to FT as another rule The US Central Bank John Williams, the official, warned that Trump’s definitions may send inflation to a sharp upper, raising unemployment and greatly weakening economic growth in the country.

The head of the Federal Reserve in Boston also expected Economic inflation It can be higher than 3 percent this year. She said that the discounts in emergency rates will not be the basic tool to respond to any deterioration in the market job.

“The basic interest rate tool that we use in monetary policy is, certainly not the only tool in the set of tools and perhaps not the best way to face liquidity challenges or market performanceShe said.

The Treasury returns for 10 years, which is a standard of dollars in the world, with 0.5 percentage points to 4.5 percent during the past week, a huge step for the asset that usually trades with small increases.

Wall Street Banks and investors said that liquidity, or the ease that traders can buy and sell without moving prices, has worsened with fluctuation in the cabinet market.

“Liquidity is bad because the fluctuations are high … moves are huge but the market’s performance is fine,” said Jay Bari, a fixed -income strategic expert in JPMorgan, said on Friday.

He added that the sale in the treasury was so far “organized.”

Collins said that any intervention by the federal reserve depends on “what are the circumstances we see.”

The central bank intervened during a period of the main market defect during the Coronverus virus crisis in 2020, when critical financing markets were seized where investors were absorbed concerns how the epidemic affects the global economy.

The Federal Reserve ascended by restoring the financial crises era programs that act as a pressure -to -pressure valve for borrowing markets, with unprecedented purchases of corporate debts. The central bank has also reduced prices to zero and remove the maximum amount of the treasury that it can buy as part of 2020 interventions.

Collins said on Friday that its Federal Reserve Bank at its disposal “additional permanent facilities can help support the market job, which is already in place.”



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