Fed's Yellen: FOMC considering additional measures to address short-term wholesale funding risk

FXStreet (Łódź) - In a prerecorded video with remarks opening the Atlanta Fed’s Financial Market Conference on Tuesday, Fed Chair Yellen signaled that the US economy is still recovering from the financial crisis and that stronger capital and liquidity standards for large banks might be required to protect their source of funding in case of renewed tensions.

Yellen pointed out that the current regulations "do not fully address the financial stability concerns associated with short-term wholesale funding,” and added that the FOMC was already considering “additional measures that could address these and other residual risks in the short-term wholesale funding markets.”

The Fed chair also stressed that the recently adopted rules on liquidity standards for global financial institutions did not apply to shadow banking.