The Fed Is More Out of It Than You Thought It Was
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Jan. 28 (Bloomberg) -- The Federal Reserve recentlyreleased the transcripts of the meetings of its Board ofGovernors in 2007, covering a time when the first rumblings ofthe financial crisis were beginning to appear.
By the end of 2008, everything would have changed: TheFederal Reserve expanded its lending powers to backstop thefinancial sector. The “Great Moderation” legacy of the AlanGreenspan era came to an end, with interest rates pushed downtoward zero, while unemployment increased and inflation slowed.