Economics
Quarles Says Central Banks Played Role in Treasuries Strains
- Financial supervisory group to release study of March stress
- Fed’s Quarles says foreign central banks were selling
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Central banks were likely one of the actors behind a selloff in U.S. Treasuries during the height of the Covid-19 financial strains in the spring, according to the Federal Reserve’s top official for supervision.
“Sales by foreign central banks were a significant source -- I think right now we would say that it was a more significant source than the unwinding of leveraged hedge fund positions,” Fed Vice Chair Randal Quarles said in answering questions on a panel at a virtual investment conference Tuesday.