Williams argues widespread use of haircuts for Treasury repo could enhance financial system stability during stress.
“In my view, widespread use of haircuts for Treasury repo could enhance financial system stability and support market functioning during periods of stress.”
Williams says interconnected markets mean events in one country rapidly spill over to impact others, making engagement critical.
“Our regular engagement is critical because the interconnected nature of global financial markets and economies means events in one country could rapidly spill over to impact others. By engaging with the offices, we build trust.”