Fed can't allow Treasury overdrafts -Bullard
JACKSON, Wyo., July 29 |
JACKSON, Wyo., July 29 (Reuters) - The Federal Reserve cannot write checks for the Treasury Department if the government's account runs out of money, a top Fed official said on Friday.
"The Fed cannot allow sort of overdrafts by the Treasury," St. Louis Fed President James Bullard said in response to questions at a conference. (Reporting by Ruffin Prevost, writing by Mark Felsenthal; Editing by Leslie Adler)
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Comments (1)
Adam_Smith wrote:
The Fed certainly doesn’t want to step forward and volunteer to prevent a default, but will this still be its position if all other attempts to avoid default fail?
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