Fed's Mester: There are good reasons for what the BOE had to do

• It is a challenging situation for the BOE
• Needed to intervene because the market was not functioning properly
• We have to get US inflation down
• US economy has so far handled Fed tightening
• I am a little bit above the median path reflected in September

Well, essentially one can think of the BOE acting as one of the core functions of the central bank i.e. lender of last resort (at least in some sense). The whole point here is that they needed to address solvency Solvency Solvency is defined as the quality or state of being solvent. This can relate to any individual, businesses, or entity’s ability to pay off long-term debts including incurred interest.As such, solvency reflects the ability of an entity to continue operations into the foreseeable future. Companies run the risk of becoming insolvent, which are often forced to file bankruptcy while solvency ratios can be performed by investors or analysts to evaluate a company’s ability to stay in business. Why Sol Solvency is defined as the quality or state of being solvent. This can relate to any individual, businesses, or entity’s ability to pay off long-term debts including incurred interest.As such, solvency reflects the ability of an entity to continue operations into the foreseeable future. Companies run the risk of becoming insolvent, which are often forced to file bankruptcy while solvency ratios can be performed by investors or analysts to evaluate a company’s ability to stay in business. Why Sol Read this Term issues in the financial system and prevent contagion risk - which is why such drastic action was needed. The question now is, will that be enough to allow the necessary parties to settle and diversify their risk exposure in case another rout in gilts were to take place moving forward?

As for her policy comments, it isn't anything that we haven't heard of from Fed policymakers recently though her last point is leaning more towards the hawkish side.