Singh: Fed Must Stay Vigilant

Emergency lending provided by the US Federal Reserve has helped stabilize the market amid the COVID-19 crisis, said Daleep Singh, the Head of the Markets Group at the New York Federal Reserve.

Singh noted that the Fed must stay vigilant and be prepared to adjust its approach if necessary as the economic outlook remains uncertain, Reuters reported.

“We need to be watchful of banking sector resilience in the face of potential waves of nonperforming loans and bankruptcies that could challenge asset quality. All of this is to remind us of what we already know: there remains tremendous uncertainty about the path ahead, and so we must stay humble in the face of ongoing risks and resolute in our commitment to adapt as needed,” Singh explained.