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

I, too, favor the facility. I think it’s very important that we are tranching this and using somewhat different ways of providing the money to these countries than we have with other countries because, as President Bullard and others mentioned, if we’re not careful, this could be used for purposes with which we are not comfortable. It could be used for supporting a currency, and I don’t think we’d be particularly comfortable with that. Obviously, we have to be realistic. Money is fungible. They have very large reserves. They could be using the reserves for these other purposes and using the swaps for purposes that we find acceptable. But I think, given the circumstances, it makes sense to be coming up with something that’s complementary to the IMF facility and make sure that the IMF facility and our facility together are sufficient to deal with the pressures in this environment. I would be satisfied to delegate the authority to the subcommittee.

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