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Fed's Barr: Attentive to risks in Treasury market

Reuters · 11/15/2022 12:14
Fed's Barr: Attentive to risks in Treasury market

- Michael Barr, the Federal Reserve's top regulatory official, on Tuesday said he is attentive to indications of a loss of liquidity in the U.S. Treasury market as the rising interest rates being engineered by the Fed cause heightened volatility.

"I do think we're seeing higher volatility in Treasury markets...that is associated with the period of rising interest rates and economic uncertainty both in the United States and globally and with that increased volatility has come a reduction in liquidity of the type you would expect given the volatility in the market," Barr said. "We're watching it very closely as always and it's something we're attentive to in thinking about the risks that lie ahead."

(Reporting By Dan Burns)