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The Fed chairman tries to explain to the California Congresswoman the difference between the discount rate and the fed funds rate. She got them confused at today's hearing. It's an understandable mistake if you haven't any understanding of how central banks operate. Of course, Waters is a member of the House Financial Services Committee.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.