Macro Musings with David Beckworth cover image

Kate Judge and Peter Conti-Brown on the Lessons Learned from the 2023 Banking Panic

Macro Musings with David Beckworth

00:00

The Fed Should Use Administrative Law to Explain Itself

The Fed does not need to formally declare with the approval of the Secretary of the Treasury that we have a banking crisis on. The two areas where the Fed is most powerful are monetary policy and bank supervision. We don't have an explanation from the Fed yet about how it sees its advantages or disadvantages when the counterparties are banks, which again is what we have in 13th three invocation.

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