The Government Bank
April 29, 2009
The Fed recently reaffirmed its determination to expand its balance sheet. The crisis has already driven it to take on risky assets such as agency bonds and commercial paper. It has also lent to weak financial institutions, and is expected to participate in the Treasury’s public-private partnership to buy toxic assets. The expansion has averted a crippling credit contraction. But the Fed could lose money by taking on risk.
Bernanke: Four Questions About the Financial Crisis
Economist: The Fed
Guha: Fed Move to Buy Treasuries Stuns Investors
FT: Bold Bernanke
Economist: Central Banks
Update (5/26/2009): Per suggestion from C.F. Reader
Opinions expressed on CFR blogs are solely those of the author or commenter, not of CFR, which takes no institutional positions.
Post a Comment
CFR seeks to foster civil and informed discussion of foreign policy issues. All comments must abide by CFR's guidelines and will be moderated prior to posting.