This is money that should have been spent by the Treasury to bail out the bad loans authorized by the US Congress.
The question is, how much more will they do?
* * * * * J B K * * * * *
San Francisco
The U.S. Federal Reserve has made clear it will not monetize federal budget deficits by printing money, a senior U.S. Federal Reserve official said on Thursday.
"We have politely made clear in all our speeches ... that we will not monetize the deficits," Dallas Federal Reserve Bank President Richard Fisher said on a panel at the Johns Hopkins University's School of Advanced International Studies.
The Fed is finished with its job of providing liquidity to markets during the financial crisis and is debating how best to withdraw reserves from the financial system, he said.
"Our balance sheet is way too large. We have assets on our balance sheet which will create problems unless we figure out how to manage them," he said.
