Fed’s Williams: We will ‘monitor, analyze’ liquidity issues in markets

New York Fed President John Williams said the Fed “acted quickly” and this “had the desired effect of reducing strains in markets.” (File photo: AFP)

The Federal Reserve will continue to “monitor and analyze” the cash shortage that hit financial markets last week, prompting the Fed to step in, New York Fed President John Williams said Monday.

When the cash crunch worsened, clogging the plumbing for the US financial system, the Fed “acted quickly” and this “had the desired effect of reducing strains in markets,” Williams said in prepared remarks.

But he acknowledged that the reaction was worse than expected and said the Fed will have to delve into the causes.

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Last Update: 14:05 KSA 17:05 - GMT 14:05
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