This Is Breaking Now: "2008 Fed transcripts offer insight into what went on behind closed doors"Submitted by Barracuda_Trader on Fri, 02/21/2014 - 12:32
FXStreet (London) - The US Federal Reserve today released the transcripts from its 2008 Federal Open Market Committee meetings. While they offer little if anything in the way of guidance for current Fed thinking, they nevertheless offer a fascinating insight into the workings of the FOMC beyond the usual carefully-considered minutes and post-meeting statements.
Dealing with the crash
The transcripts give you an insight into the Fed’s thinking the day after the collapse of Lehman Brothers when it met on 16 September 2008.
Obviously the first thing that everybody did on the release of the transcript of the meeting following the collapse of the fourth-largest investment bank in the US was to Ctrl+ F “laughter” – 22 counts.
But the first instance follows Bernanke’s indication that he was open to virtually any operation to shore up market liquidity:
“After Bill makes his presentation and we have our discussion, I would like to put on the table a request for authorization for swap lines. I prefer not to put a limit on it, so I know I’ve got my own bazooka here. [Laughter]”