New York Fed President Bill Dudley
November 16, 2010 at 07:56 AM EST
Dudley, a former Goldman Sachs economist, also rejected the widely held view that the Fed is really printing money. “What we’re doing is, when we buy Treasury securities, we are increasing the amount of reserves in the banking system. Promising! For those reserves to actually create money, the banks actually have to lend those reserves out. :( The problem [...]