Mid-sized Businesses Need Something Closer to Equity Than to Credit, Says Tarullo

The transcript discusses the Federal Reserve's role during crises, focusing on its lending constraints and the debate over quasi grants. It evaluates the Fed's strategy, highlighting concerns about prioritizing financial markets over the economy. The discussion includes an analogy comparing the Fed's political challenges to those faced by the Supreme Court. It concludes with an analysis of the Fed's legal and technical capacity to support the real economy, emphasizing the need for Congressional responsibility.

How does the text suggest the Fed's actions could impact the economy versus the financial markets?

What concerns are raised about the Fed's involvement in political decisions regarding credit allocation?

What are the legal and institutional challenges mentioned regarding the Fed's ability to provide real economy funding?