26.3 C
New York
Thursday, July 7, 2022

Inexplicable spikes still imperil Treasury market: Fed’s Brainard

Inexplicable spikes still imperil Treasury market: Fed's Brainard© Reuters. Federal Reserve Board Governor Lael Brainard speaks at the John F. Kennedy School of Government at Harvard University in Cambridge

NEW YORK (Reuters) – Four years after the so-called “flash rally” spooked U.S. investors and regulators, the Federal Reserve remains concerned that the U.S. Treasury market still occasionally moves sharply without any apparent reason, a top Fed official said on Monday.

“Markets have been able to weather several episodes of short-lived market turbulence well in the past few years,” Fed Governor Lael Brainard said in prepared remarks.

“But the fact that sharp market movements…can occur even in the absence of clear news drivers remains a concern and highlights the potential risks to financial stability posed by the high-speed transmission of price and liquidity shocks across multiple markets and trading venues,” she added.

Brainard, addressing a market structure conference at the New York Fed, said a stable Treasury market is vital as the central bank continues to trim its bond portfolio with the U.S. economy “at or beyond” full employment and inflation “around target.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

11,296FansLike
12,893FollowersFollow
751FollowersFollow
- Advertisement -

Latest Articles

Popular Articles