Fed's George: Bank strains could still materialize

Eren Sengezer FXStreet

The Federal Reserve's monetary policy and changing capital rules may hasten the ongoing consolidation in the banking industry, Kansas City Federal Reserve Bank President Esther George said on Friday, as reported by Reuters.

In her prepared remarks for delivery to the Independent Bankers of Colorado, George warned that bank strains could still materialize and noted that community banks need to be vigilant given stress in their core markets, particularly commercial real estate.

Market reaction

These comments don't seem to be having a significant impact on market sentiment. As of writing, the S&P 500 Index was up 0.4% on the day at 3,260.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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