Nobel Laureate Spence Says Fed Can Handle Repo Market

The transcript discusses the Federal Reserve's ability to manage financial dislocations, highlighting their competence in handling liquidity crunches. It also addresses the challenges central banks face, such as the changing relationship between inflation and unemployment. The discussion concludes with confidence in the Fed's preparedness for increased treasury issuance and routine funding issues.

In what ways do dislocations in the financial system occur, according to the text?

What evidence suggests that the Fed is competent in managing financial market stability?