Fed’s Barr Wants Banks Using Discount Window for Liquidity Needs
- Fed’s lending facility crucial for banks, vice chair says
- He wants to reduce a stigma of taking money from Fed
Michael Barr
Photographer: Al Drago/BloombergThis article is for subscribers only.
The Federal Reserve’s top bank watchdog wants lenders to be more comfortable turning to the central bank’s discount window.
Michael Barr, the Fed’s vice chair for supervision, touted the backstop as an important tool for financial stability and monetary policy. In prepared remarks for a European Central Bank event on Friday, he said the lenders should use the window in good times and bad.