MNI BRIEF: Schmid Says Fed Is Closely Monitoring Markets

Federal Reserve Bank of Kansas City President Jeff Schmid said the central bank is closely monitoring financial markets and despite recent gyrations there hasn't been any need to intervene.

"We're literally by the minute watching those markets and making sure that we're using the tools to make sure that the transactions and liquidity keep flowing," he said in Q&A at an event in Kansas City. "I don't think there's been any sizable need lately. It looks to me like the market is adjusting pretty well for the gyrations that have been in the market here the last couple of weeks. We're there if needed." 

"I have great confidence that that there's a very high priority on keeping our eye on that USD39 trillion Treasury market, because that's an anchor to a lot of the credit flow that happens globally," Schmid said.