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Hosted by David Beckworth of the Mercatus Center, Macro Musings is a podcast which pulls back the curtain on the important macroeconomic issues of the past, present, and future.

Jul 8, 2024

Steven Kelly is the Associate Director of Research at the Yale Program on Financial Stability and is also a returning guest to the podcast. Steven rejoins David on Macro Musings to talk about the financial stability implications of the discount window. David and Steven also discuss the issues with FHLBs, how to fix the challenge of reporting requirements, restarting the term auction facility and committed liquidity facilities, and much more.


Transcript for this week’s episode.


Steven’s Twitter: @StevenKelly49

Steven’s blog: Without Warning


David Beckworth’s Twitter: @DavidBeckworth

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Related Links:


*Domestic Liquidity Provision During Potential Crises* - a panel discussion featuring Steven Kelly, Bill Nelson, Susan McLaughlin, and Luc Laeven at the Federal Reserve Bank of Atlanta’s 2024 Financial Markets Conference


*Weekly Fed Report Still Drives Discount Window Stigma* by Steven Kelly


*The New Bagehot Project* - an initiative by the Yale Program on Financial Stability


*Forward Guidance: Something Old and Something New: Two Potential, Beneficial Discount Window Facilities* by Bill Nelson




(00:00:00) – Intro


(00:01:02) – The Yale Program on Financial Stability and Steven’s Role


(00:07:04) – Building a Resilient Regulatory Framework


(00:12:45) – Addressing Issues in the Discount Window


(00:21:37) – Responding to Criticism of Liquidity Regulations


(00:27:22) – Fixing the Challenge of Reporting Requirements


(00:33:29) – Restarting the Term Auction Facility and Committed Liquidity Facilities


(00:37:24) – Addressing the Issue with FHLBs


(00:45:26) – Additional Thoughts from the Atlanta Fed Conference Panel


(00:50:59) – Could Increased Use of the Discount Window Cause a Shift in the Fed’s Operating System?


(00:54:44) – Outro