Bowman: Discount window is for emergencies

  • Bowman highlights downsides to banks borrowing from the discount window

These comments don't touch on monetary policy.

  • There are downside risks to discount window
  • You do need to be signed up for it and you do need to test
  • Don't necessarily need to preposition collateral at discount window
  • Fixing discount window by modernizing it is important
  • Could be unintended consequences by forcing banks to use discount window, or hold collateral at it

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