Small font size A Larger text size A Largest text size A

Fed's Cook says big banks are resilient, vigilance is 'critical'

BY Reuters | ECONOMIC | 04:00 PM EDT

NEW HAVEN, Connecticut, March 26 (Reuters) - Federal Reserve Governor Lisa Cook said on Thursday that the largest U.S. banks have "very high levels of resilience," but added that policymakers need to be vigilant about monitoring risk and mapping out potential financial stability problems ahead of time. "The tradeoffs between acting to prevent the worst near-term effects at the cost of a larger Fed footprint and moral hazard are real," Cook said in remarks prepared for delivery at the Yale School of Management. "That is why properly undertaking scenario analysis in advance is a high priority."

Her prepared remarks did not touch on her views about monetary policy or the economic outlook.

(Reporting by Daniel Burns in New Haven, Connecticut; Writing by Ann Saphir; Editing by Matthew Lewis)

More Fixed Income News

Fed's Cook says the balance of risks has shifted toward inflation due to Iran war BY Reuters |ECONOMIC 06:04 PM EDT
Fed's Cook says the balance of risks has shifted toward inflation due to Iran war BY Reuters |ECONOMIC 06:01 PM EDT
Update: TSX Closer: Index Falls Again As Oil Seen at US$150 and Global Economy Seen in "Foothills of Stagflation"; BY MT Newswires |ECONOMIC 04:54 PM EDT
Put Bitcoin Down On Your Next Home?Fannie Mae Now Takes Crypto BY Benzinga |AGENCY 04:53 PM EDT

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article