US Fed's Powell downplays concerns about cash crunch on financial markets

US Federal Reserve Chairman Jerome Powell downplayed concerns in recent days about a cash crunch in US financial markets, saying the situation says little about the real economy. Powell said the need to pay quarterly tax payments was a factor, which prompted the New York Federal Reserve Bank twice this week to inject liquidity into the short-term funding market.

"While these issues are important for market functioning and market participants, they have no implications for the economy or the stance of monetary policy," Powell said in a press conference.