WASHINGTON (Reuters) – Federal Reserve Vice Chair Randal Quarles says the banking system and recently reworked rules policing them performed “quite well” through the coronavirus pandemic, but urged regulators to continue to pursue fixes to bring an end to runs on money market funds.
According to prepared remarks, Quarles also argued that the Fed’s countercyclical capital buffer, which can be increased to force banks to hold more cash to guard against instability, should only be utilized during times of “significant irrational exuberance.”
(Reporting by Pete Schroeder; editing by Jonathan Oatis)
