"On November 28, the Federal Open Market Committee voted 9 to1 to take coordinated action with other central banks to enhance their capacity to provide liquidity support to the global financial system. I participated in the FOMC vote as an Alternate to Charles Plosser, President of the Federal Reserve Bank of Philadelphia, who was unable to attend.
"I dissented on the vote because I opposed the temporary swap arrangements to support Federal Reserve lending in foreign currencies. Such lending amounts to fiscal policy, which I believe is the responsibility of the U.S. Treasury. The Federal Reserve has provided and can continue to provide sufficient dollar liquidity through purchases of U.S. Treasury securities. I also opposed lowering the interest rate on swap arrangements to below the primary credit rate.
"My views on central bank lending were also discussed in a November 16, 2011 speech."
The Richmond Fed serves the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia. As part of the nation's central bank, we're one of 12 regional Reserve Banks that work together with the Federal Reserve's Board of Governors to strengthen the economy and our communities. We manage the nation's money supply to keep inflation low and help the economy grow. We also supervise and regulate financial institutions to help safeguard our nation's financial system and protect the integrity and efficiency of our payments system.
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