Free Trial

MNI BRIEF: Fed's Bullard Says Financial Stress Has Risen

(MNI) WASHINGTON

Financial stress has risen since the outbreak of U.S. banking turmoil this month but the Federal Reserve has the tools to address financial stability concerns while still fighting to push inflation down with "appropriate" monetary policy, St. Louis Fed President James Bullard said Tuesday.

"Financial stress has been on the rise since then in the wake of recent bank failures and turmoil," Bullard wrote in a column. "The macroprudential policy response to these events has been swift and appropriate. Regulatory authorities have used some of the tools that were developed or first utilized in response to the 2007-09 financial crisis in order to limit the damage to the macroeconomy, and they’re ready to take additional action if necessary."

Bullard said "continued appropriate macroprudential policy can contain financial stress in the current environment, while appropriate monetary policy can continue to put downward pressure on inflation."

(See MNI INTERVIEW: Credit Crunch Looms On Bank Runs-Ex-Fed's Stein)

MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.