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

Thank you, Mr. Chairman. A couple of things briefly. First, Mr. Chairman, the most important decision that needs to be made—and, again, I defer like others to your judgment—is on the extension of the facilities, given market expectations about what you and others have said about them in recent weeks. While many very serious, legitimate issues have been raised about the nature of our supervisory framework and about our comfort with the collateral we’ve received, I would suggest that we won’t be able to wait until we’ve gotten comfort around those questions before you decide that we should take a vote either today or by notation vote on the broad facilities that we’ve already put in place. So I would suggest that maybe we’d want to separate that from the broader discussion.

As for the most optimal mix of liquidity facilities, I’m convinced that what we have is imperfect. It has had some beneficial effect, but it can be improved upon. Exactly how we judge those improvements—the standards by which we come to a determination, which will necessarily be imperfect in these markets—is worth further consideration; and I would not object to separating that question from the extension question that you raised at the outset. Thank you.

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