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

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The Invocation of 13.3 in the Federal Reserve Act

The Federal Reserve invoked 13.3 instead of the discount window part of the Federal Reserve Act to protect depositors in 10B bank. The move may have been reasonable once you're already doing the systemic risk exception, but it's still unclear why this was done. "I just wonder about the amplification of fear through social media," says Fed Chair Jay Powell at a recent press conference.

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