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

Thank you, Mr. Chairman. I am concerned about the credit risk associated with the term lending here, and I suppose if everybody feels comfortable with it, then that would be all right. It does seem, though, that the value of these new programs, much as President Stern just mentioned, seems small. These are temporary facilities exercised under unusual and exigent circumstances. They are currently anticipated to go away. I would think that we should be having big value added from additions to these programs. I wonder a bit about how confident we are about what the market reaction to the introduction of these pretty complicated programs is going to be. Are they going to wonder about what we’re looking at versus what they’re looking at? These are supposed to be temporary; but the way we add more to it, it seems as if it’s going to be more difficult to take this away, at least in terms of the expectations of our borrowers and the markets. We have been doing this as we make comparisons to the ECB and the Bank of England, and they have been doing this for some time. It sort of suggests that this is something that we’re going to do for a longer period of time. I am not saying that that might not be the right decision ultimately under the right risk management, but it does seem to be prejudging that a little. Thank you.

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