Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

Yes, indeed. Maybe Trish and Bill want to jump in here as well. What this means is that, in extinguishing any obligation that arises from the swap agreement, if the central bank for some reason doesn’t pay us, we can take other assets on the books that are being held by the Federal Reserve Bank of New York to extinguish those liabilities. Does that make sense? So if the Brazilians are holding some additional assets at the New York Fed that are unrelated to the swap and they are not making good on the swap, we can draw on those other assets to extinguish the obligations from the swap.

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