The president of the Bank of the Federal Reserve (FED) of Boston, Susan Collins, said that the Fed has multiple monetary policy tools already available its disposition if the market conditions require it, but the person responsible for the Fed took the opportunity to oppose the idea that the Fed uses the top cuts.
Key points
The Fed would be absolutely prepared to stabilize financial markets if the conditions become disorderly.
The markets continue to work well, we are not seeing liquidity concerns in general.
The Fed has tools to address concerns about the operation of the market or liquidity if they arise.
The Fed has had to display several tools quite fast in the past.
The Fed is absolutely prepared to do so as necessary.
The basic interest rate tool used for monetary policy is certainly not the only tool in the tools set.
Interest rates are probably not the best way to address liquidity challenges.
The direct action of the Fed depends on the conditions it observes.
The Fed already has additional facilities in operation to help support market functions.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
