Banks are safe: Fed's Neel Kashkari
The Federal Reserve is the lender of last resort
"We can supply all the cash banks need to meet their customer concerns.This is the reason the Federal Reserve exists."
That's what Minneapolis Fed President Neel Kashkari told CBS' 60 Minutes on Sunday night.
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The Federal Reserve is the lender of last resort.
Congress has given the Fed the authority to print money and provide liquidity to the financial markets.
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"The banks are sound right now, but we are hearing from big businesses across the country, including in Minnesota, that big business' are drawing down their credit lines, they are borrowing from banks just because they're nervous," said Kahkari.."And if they are all drawing down their credit lines at the same time, it puts stress on the banking system and that is where the Federal Reserve steps in to provide liquidity."
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Kashkari says the Federal is being more agressive. "Our chairman Jay Powell has learned from the experience of 2008, we are moving much faster than in 2008. I think we are very agressive and I think that is the right thing,
In the past week, the Fed flooded the market with money and Kashkari says there is no end to its ability to do that.