Investing.com – The Federal Reserve (Fed) followed the example set by both the Bank of England (BoE) and the European Central Bank (ECB) in order to buffer liquidity measures in the wake of the U.K. referendum decision to leave the European Union (EU), known as Brexit, on Friday.
“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 monetary authority said in a statement.
“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,” it added.
Fed chair Janet Yellen has no regularly scheduled appoints until June 29 when she will attend the ECB forum on central banking.
The member of the U.S. central bank scheduled to speak after Britain’s decision will be Fed Governor Jerome Powell.
Powell could give indications on the Fed’s stance in reaction to the vote in a speech given on Tuesday, June 28, titled “Interest and Influence: Central Banks and the Global Economic Outlook”.