The Federal Reserve will continue to make credit available and the U.S. government will provide capital to viable firms, but the deleveraging process remains "far from complete," newly appointed Fed Governor William Dudley said on Friday.
Speaking at an event in New York, Dudley said the Fed's commercial paper facilities have worked well in ensuring the proper functioning of financial markets, and that the next tranche from the Term Asset-Backed Securities Loan Facility would be extended to stimulate other asset classes.
The central banker also said the problem of systemic risk in the United States needs to be addressed and called for more transparency in financial institutions.
On the economy, he said Friday morning's jobs data, revealing 651k job losses in February, adds to the downward momentum in the United States.
By Erik Kevin Franco and edited by Sarah Sussman
©CEP News Ltd. 2009