NEW YORK, Dec 17 (Reuters) - Boston Federal Reserve President Eric Rosengren on Tuesday said his preferred recourse for mitigating volatility in money markets would be for the central bank to continue to maintain its bond portfolio at a sufficient size than to relax bank capital requirements.
In an interview with Reuters before delivering remarks in New York, Rosengren said: “I would not be inclined to address it by regulatory changes. I would be inclined to make sure we maintain a balance sheet that’s big enough that there’s plenty of liquidity in the market.”
In prepared remarks, Rosengren said the current level of the Fed’s policy interest rate is appropriate for the near term. (Writing by Dan Burns Editing by Chizu Nomiyama)