Macro Musings with David Beckworth cover image

Brad Setser on Addressing the Global Dollar Shortage and COVID-19’s Implications for Worldwide Trade Imbalances

Macro Musings with David Beckworth

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Fed's New Dollar Swap Lines - Is That a Good Idea?

The Fed has opened up all these new dollar swap lines. So it extended to other countries. Some emerging markets. It also has this new repo facility for central banks. In my mind, what the Fed effectively has done is it sent a signal that says, look, at any time there's another crisis like this in the future, these effective branches of the Federal Reserve will be opened up again for business.

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