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

I have a question that is somewhat different from that. When you brought this up, I thought that we were asking to extend this into next year but that the idea was to eventually back away from this. We are setting up this new procedure that suggests to me that it might end up needing to go longer since we are talking quarter-ends and so forth. I am not there, but I know there are other strains. Are the liquidity strains suggesting not only that we want to extend this into next year but also that there is a tightening, a worsening, of conditions that means we need to change the approach here and provide even more assurances to the market, so that we are committed to this? This seems to take us away from rather than toward backing out, and I really am a bit concerned about that.

The second question I have on this is about going from 28 days to 84 days on the TAF. We in Kansas City don’t have a lot of this going on, but we have some; and we haven’t had a lot of concern about the fact that it’s 28 days and not a longer maturity. Are things happening in the markets such that we would want to do this to help settle things out, or is it merely an administrative change to ease our burden and perhaps theirs as well? I don’t have a lot of problems with 125 percent coverage ratios, but I am interested in why we are looking to change the maturity. So I have those two questions for you.

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