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

I am supportive of the overall recommendations. I would say, along with President Evans, that I am a little worried about how the markets may react to these new additions and whether they may view it as the Federal Reserve viewing things as deteriorating rather than improving. We have to think a bit about what the market expectations may be with the announcement of these additions. I would just like to comment on President Yellen’s comments. I think they highlight that we probably need to spend a little more time thinking about the link between supervisory ratings and our running of the discount window as we do some of the other work streams we are doing. Both our own supervisory ratings and the ratings of the primary regulators in some cases seem to have lagged. That is particularly true for the OTS. There are a number of other OTS institutions that the market seems quite concerned about and where the ratings seem inconsistent with the market’s concerns. So it is not just looking backward but also looking forward. As we extend the term for things like the TAF, I think the concerns do get raised if the primary supervisor is not being very quick to make an evaluation of deteriorating circumstances. So as we do our work streams, I would just encourage us to spend a little time thinking about how the supervisory ratings and our operations of the discount window could be melded a bit better.

Keyboard shortcuts

j previous speech k next speech