In the wake of the Bear Stearns crisis, the Federal Reserve has moved quickly to try to restore calm in financial markets both domestically and abroad. Beginning today, Wall Street investment houses can obtain short-term emergency loans from the Fed, and its emergency lending rate to financial institutions has been cut from 3.50 percent to 3.25 percent. “These steps will provide financial institutions with greater assurance of access to funds,” Federal Reserve Chairman Ben Bernanke said yesterday. President Bush has scheduled a White House meeting this afternoon with his Working Group on Financial Markets, which includes Bernanke, Treasury Secretary Henry Paulson, and Securities and Exchange Commission Chairman Christopher Cox.
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Gloomy conservatives
“These steps will provide financial institutions with greater assurance of access to funds,” Federal Reserve Chairman Ben Bernanke said yesterday.
This is hilarious, since we are over a trillion dollars in debt. So where do those funds come from?
China and India, mostly
Lets print money — its easier than good monetary policy.
Stevehu,
Strictly speaking, the Fed is not tied in with the government. However, I concur with your point about the national debt.