Fed’s Williams: Banks should be prepared to use discount window if needed

By Michael S. Derby

NEW YORK (Reuters) – Federal Reserve Bank of New York President John Williams said Thursday that banks need to be prepared to use the Fed’s discount window before trouble arrives.

Williams, speaking in New York before a banking group, said bank stress from last year showed many banks were not ready to tap Fed liquidity, and the central bank is working to rectify this situation now.

(Reporting by Michael S. Derby)

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