WINTER 2015
as Richmond’s Jeffrey Lacker, argue that
the Federal Reserve will differentiate between monetary and credit policy in the
future. Still, without historical evidence
or clearly written laws, this is a difficult
claim to substantiate with regard to possible actions in future crisis situations. Big
banks scrambling to complete credible living wills will have to meet the Federal Reserve’s requirements for these plans, but
actual events in case of a crash may play
out differently than expected. There is an
ambiguity of the restrictions on the Federal Reserve as a lender of last resort, and
it is not unfathomable that the government
or the Federal Reserve would intervene in
case