“We need to understand how changes in the market ecosystem —whether due to regulation, technology, or other factors — have influenced market resilience,” Williams said in remarks prepared for the U.S. Treasury Market Conference.
The Fed helped to stabilize markets after bouts of volatility last September and in March by conducting large-scale operations in the market for repurchase agreements, or repo, and by purchasing Treasury securities and mortgage-backed securities. Studying those scenarios can help lead to reforms that can make the financial system stronger, Williams said.
“It’s crucial that our financial system can handle shocks and disruption,” he said.
Williams did not comment on his outlook for the economy or monetary policy in his remarks.
Source: Economy - investing.com
