Dudley Says U.S. Households, Banks Well-Equipped to Face Shocks

The greatest threat currently facing the U.S. expansion is a major shock but the good news is that U.S. households and banks are better able to absorb any adverse economic developments than they were when the last recession hit, said Federal Reserve Bank of New York President William Dudley.

“Key sectors of the U.S. economy, such as the household sector, seem to be in good shape,” Dudley said in remarks prepared for a press briefing Friday in New York. “The financial system is also clearly much stronger, with the banking system much better capitalized and with much larger liquidity buffers than in the years preceding the financial crisis.”’