The Last Resort in a Changing Landscape

Daly, Mary C.

Journal Article

The Last Resort in a Changing Landscape

Abstract: As lender of last resort, the Federal Reserve plays a vital role in maintaining a sound and stable financial system. But the frequency and scale of Fed interventions following disruptions like the Global Financial Crisis and COVID-19 are concerning. As the country emerges from the pandemic, it’s time to focus on crafting more resilient policies, particularly by addressing Treasury market vulnerabilities and providing greater prudential oversight.

Keywords: COVID-19; financial infrastructure; resiliency;