Fed's Hammack says some volatility in in a single day markets is just not a nasty factor

Federal Reserve Financial institution of Cleveland President Beth Hammack speaks earlier than the Cash Marketeers of New York College

• Helps ongoing quantitative tightening (QT), a slower drawdown tempo will permit longer course of
• Fed’s stability sheet has shrunk from $9T to $6.8T since QT started in 2022

• Cash market liquidity nonetheless seems considerable

• Supported Fed’s latest slowdown in stability sheet drawdown

• Some volatility in in a single day markets is just not a nasty factor

• Sees attainable instances for return to Fed repos relying on market situations

• There are prices for holding Fed’s stability sheet too massive

• Helps work to strengthen standing repo facility

• Prices of too-large stability sheet embrace market threat taking

• Doesn’t touch upon financial outlook

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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