Fed's Williams: Volatility in repo rates showed markets not effectively distributing liquidity

Commenting on the Federal Reserve Bank of New York's actions following the heightened volatility in money markets last week, the bank's president John Williams said that the NY Fed's actions had the desired effect of reducing strains in markets and added that the volatility in repor rates showed that the market was not effectively distributing the liquidity, per Reuters.

"Daily repo operations are intended to keep fed funds rate within the target range," Williams further elaborated on the matter. "The bank was prepared for liquidity issues and acted quickly and appropriately."

The US Dollar Index didn't pay any attention to these remarks and is now up 0.24% on the day at 98.70.