The Fed must make a clear distinction between liquidity and solvency trouble at financial institutions. A bias in favour of launching rescues of all sorts not only raises the risk of moral hazard, it could undermine its credibility, harm monetary policy and ultimately weaken its independence.
Central bank independence: The US Federal Reserve should serve as a lender of last resort, not immediate
📅 Published: December 30, 2025 |
📂 Category: Uncategorized
