Federal Reserve Vice Chair for Supervision Quarles: says coronavirus introduces new element of uncertainty for the economy
- he expects inflation to move back to Fed's 2% target over the medium term
- he is hopeful phase one deal with china will boost us exports
there is still slack in the labor market
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- worth considering changes that help banks treat treasuries similar to reserves when meeting liquidity requirements
- Fed actively considering a change to liquidity rules for large banks that would use more average figures instead of year-end inputs
- potential standing repo facility is still of interest, but there are benefits to working with fed's existing tools
- one option is for Fed to allow banks to assume the discount window can be used in stress scenarios under certain conditions
