The interest rate banks charge each other for overnight loans eased closer to a record low as May wrapped up on Friday, but the move is unlikely to prompt U.S. Federal Reserve action unless it stays at the lower level.
U.S. Treasury Secretary Janet Yellen told G7 finance ministers and central bank governors on Friday it was important to provide further fiscal support "to promote a robust and lasting recovery in the wake of the pandemic," the Treasury said in a statement.
Safe-haven assets such as cash and gold funds drew investors during the week to Wednesday, BofA's fund flow statistics showed on Friday, a sign of growing concern over inflation and the potential roll back of central bank stimulus.
Read more about Glut of dollar drives usage of Fed reverse repo facility to record on Business Standard. Even though the offering rate on the Fed facility is 0 per cent, demand has been increasing as a flood of cash overwhelms U.S. dollar funding markets
A top Federal Reserve official signaled on Wednesday he was ready to open talks on reducing some of the U.S. central bank's emergency support for the economy, even if only to clarify the Fed's plans as the economy roars ahead and prices rise.