AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)
Markets

NY Fed's Logan: Fed moved quickly to address market dislocations in spring

  • From the experience we had at the time and the data we've been able to assess, it's clear that a wide range of investor types were really selling.
  • The Fed's purchases of Treasury securities and its commitment to do more if necessary, helped to keep money flowing through key markets, Logan said.
Published October 15, 2020

The Federal Reserve moved quickly last March to address broad-based selling of Treasury securities and other assets that caused notable dislocations in markets, and it stands ready to respond to other issues that may arise, a senior New York Fed official said on Wednesday.

When the coronavirus pandemic led to shutdowns and thrust the US economy into a recession, a wide range of investors seeking cash began to sell safe assets such as Treasury securities, said Lorie Logan, an executive vice president at the New York Fed and the manager of the System Open Market Account (SOMA).

"From the experience we had at the time and the data we've been able to assess, it's clear that a wide range of investor types were really selling," Logan said during a panel organized by the Securities and Exchange Commission.

The Fed's purchases of Treasury securities and its commitment to do more if necessary, helped to keep money flowing through key markets, Logan said.

The US central bank in March slashed interest rates to zero, launched open-ended purchases of Treasury securities and mortgage-backed securities and established a slate of emergency lending facilities. It also created programs to help foreign central banks access US dollars.

While some of the programs set up by the Fed were revived from the 2008 financial crisis, the central bank also established new facilities. This year's crisis differed from the last downturn in that it was "more of a systemic liquidity event," and the events are still being studied, Logan said.

"It's going to require careful and new analysis of what changes will help fortify the financial system," she said.

The Fed will also continue to monitor markets for any further risks, Logan said. "We're going to continue to remain ready to respond," she said.

Comments

Comments are closed.