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

Thanks. I may not be the only one who thinks that maybe we should come to some kind of conclusion here. So let me suggest a way to go forward. First of all, as Governor Warsh mentioned, I think we were in agreement at the last meeting that we would extend the TSLF and the PDCF beyond September. The TSLF extension requires approval both by the Board and by the FOMC. So let me make a list here. The first thing I’d like to do—and I hope this is okay with everyone—would be to have Scott read those two resolutions. I would then like to ask the Board to extend the PDCF. Again, I believe we have discussed these and are okay with them.

With respect to the extension of the TAF terms, my sense is that this would be a productive thing to do from the perspective of markets. I agree with President Geithner that the markets are still quite stressed and that this would be helpful. It has the additional sort of multiplier effect that, if we extend to three months, the ECB will auction $60 billion to three months as well, to give some additional impetus in Europe. That said, I do not feel comfortable doing this unless we have at least a reasonable sense that the presidents are okay with it. So after we finish the first three votes, I’ll take a straw vote of the presidents and ask you to answer the following question: Given the efforts, to which President Geithner and Governor Kroszner alluded, to address the credit issues that we already face in our 28-day program, do you feel comfortable in doing the 84 days? If you do not, then my suggestion would be just not to go forward with it.

Finally, the TSLF options program is an FOMC vote. I would propose that we take a vote on it and see how it comes out. Okay? Any comments, questions, or concerns? If not, Scott, could you start us off with the TSLF extension and take us through what we have to do?

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