MNI BRIEF: Fed's Bowman Wants A More Effective Discount Window

Federal Reserve Governor Michelle Bowman said Thursday the central bank should ensure the discount window is used more effectively when the financial system is under duress such as during last year's bank failures.

“This must include ensuring the payments infrastructure that supports bank funding mechanisms is equipped to operate not just during business-as-usual conditions, but especially during stress events," she said in prepared remarks to a conference at the Dallas Fed. "Last year’s banking stress clearly demonstrated the need for reforms and updates, but these issues existed long before the bank failures." (See MNI INTERVIEW: Fed Should Mandate Readiness Of Discount Window)