Fed's ready to mop up excess liquidity from the banking system if needed, Vice Chairman Donald...

|By:, SA News Editor

Fed's ready to mop up excess liquidity from the banking system if needed, Vice Chairman Donald Kohn said this morning in Frankfurt, noting that "stable, anchored inflation expectations become more critical [when interest rates are at zero] than they are in normal times." Kohn conceded many of the Fed's moves during the crisis were "uncomfortable" but "necessary."