MNI BRIEF: Fed's Rosengren Says Treasury Market Needs Overhaul

Boston Fed President Eric Rosengren on Tuesday called for an "overhaul" of the U.S. Treasuries market infrastructure but declined to go into details.

"The movement in financial markets in March was clearly distressing," Rosengren told the UBS European Virtual Conference. "As the sovereigns grow very large but brokerage balance sheets do not grow nearly as quickly, the ability to process extreme movements in volume becomes more and more difficult. Our infrastructure needs an overhaul in markets."

He has also pushed for money market fund reform, he said, but cautioned that that should not be his role. Fed Vice Chair Randal Quarles last month said the market may not be able to support stresses in the Treasuries market without the Fed due to the sheer volume of securities.