- AP/Evan Vucci
The Federal Reserve is paying close attention to the market sell-off and will step in if it needs to, it said in a statement Friday.
Markets are selling off after Britain voted to leave the European Union in its referendum – a move that many investors had not expected.
Earlier this week, Fed chair Janet Yellen said a Brexit vote could create volatility and have significant consequences for the US economy.
Here’s the brief statement from the Fed:
“The Federal Reserve is carefully monitoring developments in global financial markets, in cooperation with other central banks, following the results of the U.K. referendum on membership in the European Union. The Federal Reserve is prepared to provide dollar liquidity through its existing swap lines with central banks, as necessary, to address pressures in global funding markets, which could have adverse implications for the U.S. economy.”
Earlier Friday, Bank of England Governor Mark Carney said the central bank could pump up to£250 billion ($345 billion) into the financial system to steer the economy through a “period of uncertainty and adjustment.” Also, the Swiss National Bank said it intervened in the foreign-exchange market, and would remain active, after the franc soared against the euro.