The Federal Reserve is considering possible action to tackle the overreliance of the financial sector on fragile short-term funding, Randal Quarles said on October 15.

The Fed’s vice-chair for supervision said runs on prime money market funds and commercial paper in March were “particularly disappointing”, as they were similar to stresses that developed during the global financial crisis more than a decade ago.

Post-2008 reforms had gone some way to cutting market participants’ reliance on