Vice-Chair and Fed’s Quarles says transition away from LIBOR rate needs to be accelerated in comments further to what we heard earlier.
Key notes
- Quarles says there was plenty of cash in banking system in September but it wouldn’t move to where it was needed.
- Quarles says unexpected friction in the movement of cash suggests more reserves are needed.
- Quarles says it’s important to focus on size of Fed balance sheet relative to GDP, not on absolute size.
- Quarles says he is not convinced consumer inflation expectations are declining.
Earlier comments
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US Fed Vice Chair Randal Quarles: There is still slack in the labor market.
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