Fed’s Brainard: Monitoring extreme volatility of cryptocurrencies

Board of Governors of the Federal Reserve Lael
Brainard speaking

  • Financial asset valuations stretched, cyclical pressures building
  • Asset prices may be particularly vulnerable to outside economic shock
  • Risks to US financial system ‘moderate’ though Fed monitoring effects of fiscal stimulus
  • May need to raise banks capital buffer if cyclical pressures build, vulnerabilities grow
  • Fed monitoring ‘extreme volatility’ of
    cryptocurrencies; could raise investor-protection issues

Headlines via Reuters  

Brainard attuned to the risks facing the economy and markets, and warning of such. And on crytos also.

On the economy and policy – B has been towards the more dovish end of the FOMC spectrum (as a governor, she gets a vote on FOMC decisions) but her response to incoming data and developments (eg fiscal boost) has swayed her (and others) to less dovish/more hawkish. 

There will be a Q&A to come  

more to come  

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