Steven Kelly is the associate director of research as the Yale Program on Financial Stability. Steven returns to the show to discuss his new model, the Treasury Equity Model of the Federal Reserve’s emergency lending.

Check out the transcript for this week’s episode, now with links.

Recorded on January 23rd, 2025

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Timestamps:

(00:00:00) – Intro

(00:00:47) – The Discount Window and Its Current Momentum

(00:03:22) – Evaluating the Treasury-Equity Model of Fed Emergency Lending

(00:07:33) – The Fed’s Section 13(3) Facilities

(00:12:54) – Creation of Section 13(3)

(00:16:46) – Currency Swap Lines

(00:18:36) – Beginnings of the Treasury-Equity Model

(00:28:16) – Treasury-Equity Model During COVID-19 Pandemic

(00:40:12) – Banking Turmoil of 2023

(00:46:15) – Advice for the Fed

(00:47:50) – Outro

Steven Kelly on the Challenges of Treasury Equity Funding for 13(3) Facilities

Macro Musings with David Beckworth