US Fed’s Plosser Comments

Written June 2, 2009 at 12:18 AM EST by  

Fed’s Plosser says the Fed should not be involved in financing toxic assets that date from the bubble era – FT

- Plosser says ” I think it is a bridge too far”
- Plosser added that such proposed Fed loans would expose the Fed to credit risk and tie up a sizeable portion of its balance sheet in long-term assets that would be hard to price and liquidate.

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