As events were unfolding, one could easily envision the risks that confronted the United States - and especially the risks to which the Federal Reserve, as the nation’s central bank, would have to respond. It was clear that the loss of so many key resources at the core of the financial capital of the United States would strain markets.
If allowed to mount, those strains could prompt a chain reaction drying up liquidity, which, unchecked, could lead to real economic activity seizing-up. The shocks to the financial system and the economy that were possible could have been disastrous to the confidence of businesses and households in our country and, to a significant degree, the rest of the world.