"Extremely remote": Fed Vice Chairman Donald Kohn on Columbia professor Ricardo Reis' suggestion...

|By:, SA News Editor

"Extremely remote": Fed Vice Chairman Donald Kohn on Columbia professor Ricardo Reis' suggestion that a money-losing Fed might need a Treasury bailout, calling the Fed's exposure limited. Kohn discussed Reis' paper on monetary policy (.pdf) at a Brookings Institution conference and disputed Reis' call for higher inflation: "The costs of bringing expectations back to their current anchored state might be quite high."