Mr. Ferguson gives his views on exercising caution and vigilance in monetary policy in the United States Remarks by Mr. Roger W. Ferguson, Jr., a member of the Board of Governors of the US Federal Reserve System, on the occasion of the Distinguished Speaker Series, held at the Federal Reserve Bank of Atlanta on 9/7/98. Introduction These are fascinating times for monetary policy.
To provide liquidity in a more targeted manner, the Federal Reserve may lend through the discount window to any depository institution and may also lend to any individual, partnership or corporation in “unusual and exigent circumstances.” These different ways to inject liquidity thus give the Federal Reserve a choice in how it will supply liquidity to institutions and the overall economy.