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9/23, 4:29 PM (Source: TeleTrader)
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Fed's Williams: NY Fed acted appropriately

President of the Federal Reserve Bank of New York John Williams said on Monday that the bank's handling of recent liquidity issues in money markets was appropriate.

"We were prepared for such an event, acted quickly and appropriately, and our actions were successful. Friday’s announcement on open market operations to address potential quarter-end funding pressures on interest rates followed this same approach: quickly diagnose the problem, develop the right action plan, and execute that plan," Williams stated during a speech in New York.

The New York Fed pumped billions of dollars in cash into the financial system after the repo rate surged to 10%, more than four times the federal funds rate.

Breaking the News / JC