FXStreet (Mumbai) – Speaking at the Council on Foreign Relations in New York, US Federal Reserve (Fed) Governor and voting member of the FOMC Daniel Tarullo pointed to rising anxiety that changes in financial firms’ regulation, along with some other factors, is causing some companies to pull back from the bond market.
“There does seem to be something different” in bond markets now, Tarullo said. “Something does seem to have changed”
“I don’t think there is at this point a very precise and convincing explanation for exactly what has happened.”
The Fed Governor also said that perceptions that the market was more resilient probably were not correct. “Much of that liquidity proved to be illusory.”
“There may be action needed at the end of the day, but I wouldn’t jump to the conclusion a bigger balance sheet equates to financial stability.”
(Market News Provided by FXstreet)