WASHINGTON (Pakistan Point News / Sputnik - 21st March, 2019) US financial authorities are monitoring the Brexit process by which the United Kingdom (UK) leaves the European Union (EU) very closely and are prepared for a full range of possible outcomes, Federal Reserve Chairman Jerome Powell told reporters.
UK Prime Minister Theresa May confirmed earlier in the day that she had written to European Council President Donald Tusk to inform him that London would seek a Brexit extension until June 30. May said there was not enough time for UK parliament to pass and ratify the deal before the original deadline of March 29.
"We're watching Brexit carefully and hoping it can be resolved in an orderly manner," Powell told a news conference on Wednesday after Fed chiefs released a regular set of economic projections. "We have to make sure [US financial institutions] are ready for the full range of possible outcomes."
Powell said the unprecedented nature of the Brexit process and the failure of the UK parliament to approve the agreement negotiated by Prime Minister Theresa May's government with the EU had generated significant uncertainty.
"You're going into something quite unknown that might prove stressful... Nothing like this has happened in recent years so it's very hard to be confident," he said. "We're very watchful about what's going on."
In responding to May, Tusk said he believes a short Brexit extension possible, but conditional on a positive vote on the withdrawal deal in the UK House of Commons.
