Potter Warns Fed May Have to Buy More Debt to Calm Market
- Former head of NY Fed’s trading desk speaks with BofA clients
- Recommendations go beyond New York Fed’s announcement Friday
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A former top Federal Reserve official, who oversaw the U.S. central bank’s trading desk, has warned that the type of actions taken so far to quell this week’s turmoil in money markets may not be enough to keep conditions calm and fresh debt purchases may be needed.
Simon Potter, the former New York Fed executive, made the remarks during a conference call that Bank of America hosted for its clients, according to three people who listened.