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

We would flood the market with reserves. We wouldn’t let it get to that, would we? We would have other tools for addressing a huge spike in the demand for funds at that point. Presumably it wouldn’t go far above the primary credit facility rate. I am just probing here about the amount of insurance we are providing. This seems like a very specific piece of insurance that we are providing in both of these cases, and I am having trouble seeing the link between these and the overall financial strains you are characterizing or seeing in the market. That is what all of this is about. That is why I am asking this.

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