They're beginning to understand the difference between buying securities and raising short-term rates.
* * * * * J B K * * * * *
San Francisco
The Fed not only slashed interest rates to near zero to combat the worst financial crisis in generations, but also undertook a host of unorthodox steps such as outright debt purchases.
Outstanding credit to the banking system has more than doubled since the start of the crisis to over $2.3 trillion.
Minneapolis Fed President Narayana Kocherlakota, for his part, said the Fed's massive credit injections into the financial system made it all the more crucial to time the withdrawal of such stimulus just right.
http://www.reuters.com/article/idUSTRE6220B520100303?type=GCA-Economy2010
