MIT Golub Center for Finance and Policy

Public Policy

Partners in prime: The Fed and Treasury’s new relationship

By

MIT GCFP - Viewpoints

THE ECONOMIST | Peter R. Fisher, MIT GCFP’s Golub Distinguished Senior Fellow, served as a Treasury official between 2001 and 2004. He shares the sceptical view of the Fed’s humongous balance-sheet held by Mr Bessent and Mr Warsh. But he is more concerned about the continued drift towards short-term borrowing under Mr Bessent. “He’s got a very short horizon. You can tell he’s a former hedge-fund guy,” Mr Fisher says, referring to a propensity at hedge funds to take gambles. Doing that with investor’s cash is one thing—with America’s safest asset, quite another.

Read More

(The GCFP does not make policy recommendations, and any opinions expressed are those of the authors and not the GCFP.)

Related Posts

President Tharman Shanmugaratnam receiving the Miriam Pozen Prize from Bob Pozen MIT Golub Center for Finance and Policy President Tharman Shanmugaratnam’s Miriam Pozen Prize Lecture nagel2 MIT Golub Center for Finance and Policy MIT GCFP and MIT DCI co-host talk by President of Deutsche Bundesbank UK Regulatory Bodies Board diagram MIT Golub Center for Finance and Policy Too Many Cooks, Not Enough Risk Management