Fed Has 'Moral Imperative' to Help the Economy More, Says Bair

The transcript discusses the challenges faced by small businesses in accessing credit, emphasizing the reliance on banks and the reduced incentives for big banks to lend to small businesses. It highlights the moral imperative for the Federal Reserve to advocate for fiscal relief, given the income and wealth inequality exacerbated by current interventions. The discussion also covers corporate debt interventions, suggesting a more targeted approach could have been beneficial. Finally, the potential of Central Bank digital currency is explored as a means to provide direct financial aid to stressed sectors, though it requires Congressional authorization.

Explain the potential benefits and challenges of implementing Central Bank digital currency as mentioned in the text.

What alternative solutions are suggested for providing financial support to households and small businesses?