By Tyler Durden
“Although the main interests of the Federal Reserve are macroeconomic in nature, well-functioning financial markets are ancillary to good economic performance. Conversely, financial instability can compromise economic growth and price stability. Because of this intimate connection with economic performance, the Federal Reserve has a clear interest in promoting the stability of financial markets.”
– Former Fed Governor Fred Mishkin, 2007
col·lat·er·al / k’lat’r’l; k’latr’l/ • n. 1. something pledged as security for repayment of a loan.
Continue reading An Overview Of The Fed’s Intervention In Equity Markets Via The Primary Dealer Credit Facility
