Central Banks
Fed Signals Readiness to Act in Case of Debt-Limit Instability
- Minutes show level of concern about political impasse
- Fed in 2011 and 2013 discussed options in case of a crisis
The Marriner S. Eccles Federal Reserve building in Washington, DC.
Photographer: Win McNamee/Getty ImagesThis article is for subscribers only.
Federal Reserve policymakers suggested that they viewed with concern the partisan standoff over the debt limit, with “a number” of them saying earlier this month the central bank should be ready to act to preserve financial stability if needed.
Those signals were included in minutes of the Fed’s May 2-3 policy meeting, released on Wednesday.