- November 15, 2022
- Posted by: Stratford Team
- Category: Economy
Nov 14 (Reuters) – Michael Barr, the Federal Reserve’s top regulatory official, said Monday the U.S. central bank is watching for any stresses to the financial system amid a weakening economy, and signaled that stiffer oversight of cryptocurrency is in the offing.
The Fed “will be heightening its focus on liquidity, credit, and interest-rate risks as supervised institutions manage the changing financial conditions,” Barr said in written testimony prepared for delivery Tuesday to the Senate Banking committee, noting that the U.S. economic outlook has weakened “amid tighter financial conditions and increased uncertainty.”
“A weaker economy could put stress on households and businesses and, thus, on the banking system as a whole,” he said, noting that inflation is far too high, and geopolitical events like Russia’s war in Ukraine pose downside risks to the U.S. and global economies.
Barr’s comments come as the Fed tightens monetary policy more aggressively…
