MNI BRIEF: Fed’s Hammack - High Bar For Market Intervention

The Federal Reserve must keep a very high bar for any possible market intervention in times of turmoil that is reserved for a full-on breakdown in market functioning of the kind seen in 2008 or 2020, Cleveland Fed President Beth Hammack said Wednesday. 

“There has to be an incredibly high bar for the Fed to step in and say, things aren’t working, we need to be there to support it. I personally don’t think we’ve seen anything like that at this point in time,” Hammack told investors at an event in New York. (See MNI INTERVIEW: Bond Selloff ‘Stern Warning’ For Fed-Stein)