Debt Limit Deadlock Could Force Fed to Overhaul Emergency Handbook


A crisis management manual created years ago by Federal Reserve officials could guide their response this fall if the federal government cannot pay all of its bills due to a political stalemate over raising the limit. federal debt.

Options include the Fed buying defaulted Treasuries in the open market and selling Treasuries held by the Fed to counter potentially serious strains in financial markets, according to the transcript of an October 2013 conference call.

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