The coronavirus outbreak revealed flaws in the financial system and reforms should be considered to better protect against shocks in the future, it said Monday. Federal Reserve Governor Lael Brainard, Reuters reported.
Key statements
“The money market exits, in particular, showed ideas like variable prices, minimum deposits, which could be necessary to stop the development of rescue runs.”
“The overall result showed that the system was resilient, it demonstrated the value of things like core compensation.”
“Central clearing platforms could still review margin rules, other requirements, to see what could be improved.”
“The stress that arose in the Treasury markets may suggest the need for a permanent repository or other changes.”
Market reaction
These comments do not appear to have a significant impact on the performance of the dollar against its rivals. At the time of writing this article, the US dollar index it was up 0.15% on the day at 91.02.
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