Economics
Fed Worries Turned to Financial Stability in April Meeting
- Some officials say banks should limit payouts to shareholders
- Limited discussion of yield-curve control policy tool
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U.S. central bankers saw the coronavirus pandemic posing a severe threat to the economy when they met last month and were also concerned by the risks to financial stability.
Officials agreed the “economic effects of the pandemic created an extraordinary amount of uncertainty and considerable risks to economic activity in the medium term,” minutes published Wednesday of the April 28-29 Federal Open Market Committee meeting showed. “A number of participants commented on potential risks to financial stability. Participants were concerned that banks could come under greater stress.”