, Columnist
The Longer-Term Lessons of the Repo Turmoil
There are more steps the Fed should take. Easing bank regulations isn’t one of them.
Actually, no, regulations aren’t the problem.
Photographer: Al Drago/BloombergThis article is for subscribers only.
People have drawn a lot of far-reaching conclusions from last month’s brief bout of turmoil in money markets. They see implications for bank regulation, for benchmark interest rates and even for the way the Federal Reserve implements monetary policy.
Actually, not much needs changing. But there are steps the Fed can take to make markets function more smoothly.