Fed Lending Power Dispute Resolved; Other Issues Reemerge

The Federal Reserve had a challenging close to a year in which it was often and regularly celebrated for its crisis response. Yet it found itself exactly where it desires to be the least: the middle of a heated and extremely consequential political fight. Certainly, the Fed would have preferred to be encouraging the adoption of more fiscal support instead of being the final reason holding it up.

The dispute between the US Treasury and the Fed over the year-end termination of the Fed’s emer...

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