Dudley Says Fed Market Support Could Lead to Risky Behavior

The video discusses the Federal Reserve's role in addressing economic inequality through monetary policy. It highlights the challenges the Fed faces in operationalizing policies that directly benefit households and small businesses. The discussion also covers the Fed's intervention in credit markets, the moral hazard it creates, and the need for regulation in the shadow banking sector. Additionally, the video examines the implications of the Fed's expanding balance sheet and the associated interest rate risks.

What are the main tools used by the Federal Reserve to support economic activity?

How does the Federal Reserve's monetary policy potentially exacerbate inequality?

What challenges does the Federal Reserve face in getting money to households and small businesses?

What is the moral hazard associated with the Federal Reserve's intervention in financial markets?

In what ways could the Federal Reserve regulate hedge funds and private equity to mitigate risks?

How has the Federal Reserve's balance sheet changed in recent months, and what are the implications?

What are the potential risks of the Federal Reserve taking on interest rate risk?