NY Fed President Tells Congress Europe Doesn’t Need More Fed Help

In December the Fed initiated a currency swap deal with the European Central bank that made US dollars available to Eurozone banks in exchange for euros. Critics of the swap program contend that it is a stealth bailout of Europe’s banks.

Dudley was upbeat, but cautious:

Severe stresses in European financial markets would disrupt financial markets here, which could harm the real economy. At a time when U.S. unemployment is very high, this is a particularly unacceptable outcome.

Dudley’s prepared remarks are available here.