Nate Werfel

Nate Werfel, head of market structure at BNY and former New York Fed official, dives into the complexities of the Federal Reserve's balance sheet. He highlights how liquidity in the financial system affects everyday consumers, especially during mortgage financing. By recalling the 2019 repo spike, Nate discusses the risks of scarce reserves and their impact on funding costs. He also emphasizes the crucial role of a liquid Treasury market in preventing crises like the Silicon Valley Bank failure, linking balance-sheet choices to interest-rate policies.