There is one clear advantage in giving systemic duties to the Fed, rather than to any other regulator.
Brad Delong: I favor the Fed rather than the Treasury, and rather more oversight to qualify for the loans than Chris Edley's proposal — but Chris is making sense.
These definitions are found in subsection (f) rather than in section 101 because of their particular application to secondary transmissions by cable systems.
In the U.S., quantitative easing (QE) flooded the banks with money that, as noted above, they've kept in their accounts with the Fed rather than lending out.
Many investors have been more focused on the policies of the Fed rather than the threat of a government shutdown if Republicans and Democrats cannot reach an agreement on federal spending levels.
Richard W. Fisher, president of the Federal Reserve Bank of Dallas, said in a Sept. 1 speech in Houston that uncertainty over taxes and regulation had caused companies to sit on cash and banks to hold reserves at the Fed rather than make loans.
If the rates are higher than what the banks can earn by lending their reserves to the public, Mr. Bernanke argued, then the banks will keep the money on deposit at the Fed rather than lend it to the private sector and in doing so encourage potentially inflationary spending.
Now Ray Dalio, the manager of one of the world's biggest hedge funds, Bridgewater Associates, has weighed in on the debate, arguing that the Fed, rather than tightening policy (that is, raising rates), might well end up easing instead purchasing bonds and pumping money into the financial system, a policy known as quantitative easing.
Now Ray Dalio, the manager of one of the world's biggest hedge funds, Bridgewater Associates, has weighed in on the debate, arguing that the Fed, rather than tightening policy (that is, raising rates), might well end up easing instead — purchasing bonds and pumping money into the financial system, a policy known as quantitative easing.
