Now that a little time has passed, we can review the Brexit vote with more perspective and forecast its impact on the US financial system more objectively. To do so, we believe it important to consider the following: Brexit's main short term impact will be to restrict the ability of the Fed to respond to domestic economic and financial issues, already evident in their decision to keep rates low. Further, the Fed may have to create a special QE Brexit liquidity facility to support American firms in the UK who now need to move operations either back to the US or to the Continent. Finally, having announced at the House Financial Services Committee Monetary Policy Hearing this week a November conference to examine black unemployment, we predict this effort will be placed on hold as the Fed struggles to deal with the uncertainty that follows the Brexit vote. Uncertainty is, of course, the greatest legacy of Brexit. Consider this: each and every contract signed in the UK when
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