Importantly, the presidents of the Reserve Banks participate, along with the Washington-based Board members, in the monetary policy deliberations of the Federal Open Market Committee. The presidents bring a wealth of knowledge acquired from their regional contacts.
Much, however, still needs to be uncovered for the general public to appreciate the full import of these recent events. What has been evident so far, however, is that this crisis has been more financial than macroeconomic in character and effect. Let me illustrate.