Comment on Federal Reserve Votes to Stop Bailouts of Failing Firms

Federal Reserve Votes to Stop Bailouts of Failing Firms

(WASHINGTON) — Federal Reserve officials have moved to prevent the central bank from bailing out failing companies, a power it exercised during the 2008 financial crisis. The Fed governors voted 5-0 Monday at a public meeting to downsize the Fed’s emergency lending powers. Only broad lending programs designed to revive frozen markets — not loans to individual firms — will be allowed.

 

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