Federal Reserve Vice Chair Philip Jefferson said on Tuesday that recent improvements to the central bank’s emergency lending facility have made it easier for financial institutions to access liquidity, helping support financial stability and the implementation of monetary policy.
Speaking at a U.S. Treasury market conference hosted by the Federal Reserve Bank of New York, Jefferson said the discount window provides banks with a reliable source of funding during periods of market stress. This can help reduce the risk of banks being forced to sell Treasury securities and other assets, according to Reuters.
