Feds Quarles: Important to focus on size of fed balance sheet relative to GDP, not on absolute size

Ross J Burland FXStreet

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

US Fed Vice Chair Randal Quarles: There is still slack in the labor market.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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