Evidence that Federal Reserve policymakers recently discussed potential interventions in markets after any default by the US Treasury is reviving analysis of the central bank’s menu of options to shore up the financial system.
While Fed officials have sought to distance themselves from the partisan standoff over raising the debt limit, “they can’t be fully insulated because they have a duty to protect the economy and market function, as well as being Treasury’s fiscal agent,” LH Meyer/Monetary Policy Analytics economists wrote in a note this week.
Read More : Fed Interventions Gain Spotlight as US Faces Impending Debt Deadline and Default Risk