Fed meeting transcripts from 2007 were released on Friday and portray the transformation of a seemingly disinterested Fed to one of growing angst that quickly became emergency mode.
Meeting transcripts are released with a five-year lag. This particular release shows the most detail yet about the deliberations at the Fed as one of the worst financial crises in history unfolded.
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The year started out with interest rates on hold and a general comfort about the country’s economic outlook. As the year progressed, things became increasingly uncomfortable as financial markets became strained and major financial institutions began to fail.
2007 became a banner year as it eventually led to the start of unprecedented monetary intervention that is ongoing.
Some Fed officials’ alarm grew more quickly than others. Fed chief Ben Bernanke was cautious and conflicted
about what should be done, even as interest rates began to be cut in December 2007.
You can go here
to read how the alarm of Fed officials built up over three key periods of that year.