US stock futures edge lower after S&P 500 hits record high; PCE data in focus
Investing.com -- Federal Reserve Chairman Jerome Powell confirmed on Tuesday that the U.S. central bank will maintain its current approach to providing dollar liquidity to other central banks through swap lines.
Speaking at a European Central Bank event, Powell emphasized that the Fed retains "the same authorities" and remains "prepared to use them in situations where it’s within our legal authorities and where we think it makes sense."
Powell highlighted the importance of these dollar swap lines, describing them as "a big contribution" to global financial stability. The swap lines function as loans to eligible central banks, ensuring dollar liquidity remains available throughout the global financial system, particularly during crisis periods.
At the same central bank gathering, Bank of Korea Governor Rhee Chang-yong noted that countries like South Korea need to accumulate dollar reserves as a precautionary measure.
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