Feds Quarles: Important to focus on size of fed balance sheet relative to GDP, not on absolute size
|Vice-Chair and Fed’s Quarles says transition away from LIBOR rate needs to be accelerated in comments further to what we heard earlier.
Key notes
- Quarles says there was plenty of cash in banking system in September but it wouldn’t move to where it was needed.
- Quarles says unexpected friction in the movement of cash suggests more reserves are needed.
- Quarles says it’s important to focus on size of Fed balance sheet relative to GDP, not on absolute size.
- Quarles says he is not convinced consumer inflation expectations are declining.
Earlier comments
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.