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The Last Resort in a Changing Landscape

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  • Mary C. Daly

Abstract

As lender of last resort, the Federal Reserve plays a vital role in maintaining a sound and stable financial system. But the frequency and scale of Fed interventions following disruptions like the Global Financial Crisis and COVID-19 are concerning. As the country emerges from the pandemic, it’s time to focus on crafting more resilient policies, particularly by addressing Treasury market vulnerabilities and providing greater prudential oversight.

Suggested Citation

  • Mary C. Daly, 2021. "The Last Resort in a Changing Landscape," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2021(12), pages 01-07, May.
    • Handle: RePEc:fip:fedfel:91337
    Note: The following is adapted from remarks by the president of the Federal Reserve Bank of San Francisco to the Money Marketeers on April 15.
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    References listed on IDEAS

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    6. Philippe Andrade & Jordi Gali & Hervé Le Bihan & Julien Matheron, 2021. "Should the ECB Adjust Its Strategy in the Face of a Lower r*?," Working Papers 22-1, Federal Reserve Bank of Boston.
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