Schmid: Fed watching to ensure liquidity but markets adjusting well to volatility

WASHINGTON, April 10 (Reuters) - Financial markets are adjusting well to recent volatility though the U.S. Federal Reserve is monitoring closely to ensure adequate liquidity, Kansas City Fed president Jeff Schmid said on Thursday.

"As we go through this cycle of disruption we do have an obligation as a central bank to really keep our eye on liquidity," Schmid said. "We are literally by the minute watching those markets...It looks to me like the market is adjusting pretty well for the gyrations that have been in the market the last couple of weeks. We are there if needed."