Belfast Telegraph

US Federal Reserve ready to ease pressure on markets in wake of Brexit turmoil

The US central bank has said it is ready to take steps to ease the pressure on global markets following Britain's decision to leave the EU.

The Federal Reserve said it was "carefully monitoring developments" and would pump extra money into global financial markets to soften the blow on the US economy if needed.

It stated: " 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 US economy."

The statement comes after Bank of England governor Mark Carney said volatility "can be expected" in the wake of the Brexit vote, adding that the Bank is prepared to provide £250 billion to support markets.

He said: "Some market and economic volatility can be expected as this process unfolds.

"As a backstop, and to support the functioning of markets, the Bank of England stands ready to provide more than £250 billion of additional funds through its normal facilities.

"The Bank will not hesitate to take additional measures as required as markets adjust and the UK economy moves forward."

Global stock markets and the pound have taken a hammering following the result of the referendum.

Weekly Business Digest Newsletter

This week's business news headlines, directly to your inbox every Tuesday.