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Hedge Funds May Escape Fed Blame Over Market Mayhem in March

  • Fed’s Quarles says funds weren’t a key factor in the turmoil
  • He cites Treasury sales by central banks as bigger contributor
Randal Quarles

Randal Quarles

Photographer: Joshua Roberts/Bloomberg

Hedge funds can rest easier for now.

Federal Reserve Vice Chairman for Supervision Randal Quarles said he doesn’t think the investment firms deserve the lion’s share of blame for tumult that swept financial markets in March -- contrasting statements from other policy makers that the funds’ overly leveraged Treasury trades were a crucial factor.