Institutions: It is recommended to pay attention to the Federal Reserve's use of liquidity swap operations in the short term

Jeffrey Roach, an analyst at LPL Financial, said in a note that the sudden volatility in currency markets "may have been a factor in the Fed's decision to cut interest rates ahead of its regular meeting on September 18". Investors should be aware that a well-functioning dollar funding market is critical to underpinning the financial system and that exacerbating currency volatility is a risk. Roach advised investors to "watch the Fed's use of liquidity swaps in the near term" as the increase in operations "may indicate heightened uncertainty among central bankers".