September 30, 2019 / 4:24 PM / 16 days ago

Former NY Fed markets leader Potter joins Peterson Institute

FILE PHOTO: A man passes by the corner stone on the Federal Reserve Bank of New York in the financial district in New York City, U.S., March 4, 2019. REUTERS/Brendan McDermid

(Reuters) - Simon Potter, who ran the markets desk at the New York Federal Reserve until June, is now a senior fellow at the Peterson Institute for International Economics, the think tank announced Monday.

Potter worked at the New York Fed in various capacities for more than 20 years, including as director of economic research. He became the head of the markets desk in June 2012.

Some investors and economists who work regularly with the New York Fed have raised questions about whether Potter’s departure contributed to what some perceived to be a delayed response from the bank to the recent volatility in money markets.

But New York Federal Reserve President John Williams and other Fed officials say the bank moved quickly to provide liquidity and that they are monitoring the market to develop a long-term fix.

The volatility in overnight lending markets for cash was quelled after the New York Fed repeatedly injected cash into the system and announced that it will continue the operations until Oct. 10.

“We were prepared for such an event, acted quickly and appropriately, and our actions were successful,” Williams said last week. He said Fed officials will assess whether there are enough cash reserves in the system.

Dave Wilcox, who was previously director of the division of research and statistics at the Federal Reserve in Washington, is also joining the Peterson institute as a senior fellow. Wilcox served as the chief economist and senior adviser for three Fed chairs, including Jerome Powell, Janet Yellen and Ben Bernanke.

Reporting by Jonnelle Marte in New York; Editing by Lisa Shumaker

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