Fed's Barr says inflation is far too high

Michael Barr is Vice Chair for Supervision of the Board of Governors of the Federal Reserve System. As a member of the Board of Governors Barr has a permanent vote on the Federal Open Market Committee (FOMC).

His comments are wide-ranging but mainly not related to his outlook on the economy nor monetary policy. A few snippets though:

• Another priority is monitoring the risk of crypto-asset-related activities
• Recent events in crypto markets have highlighted the risks to investors and consumers when new asset classes not accompanied by strong guardrails
• As we have recently seen, many innovations also carry risks, including liquidity Liquidity Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Read this Term runs, the rapid collapse of asset values, misuse of customer funds, fraud, theft, manipulation, and money laundering
• Us economic outlook has weakened amid tighter financial conditions, uncertainty
• Crypto-asset-related activity, requires effective oversight that includes safeguards to ensure that crypto companies are subject to similar regulatory safeguards as other financial services providers
• Recent events remind us of the potential for systemic risk if interlinkages develop between the crypto system that exists today and the traditional financial system
• Fed is heightening focus on liquidity, credit, interest-rate risks
• Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term far too high