Greenspan subverted the will of the FOMC by, after a no-change funds-rate vote on Tuesday, convening just the Board of Governors on Friday to change the administratively-set discount rate (using a pre-arranged proposal from a regional bank board), then instructing the desk to make a 'technical' pass-through change to the federal funds rate in the same direction and amount—effectively setting the funds rate himself without committee consent.

factualpending

Speaker

Michael Belongia

Evidence Quote

what you've done is subvert the will of the FOMC by this trick of changing the discount rate

Source

Michael Belongia on the Fed 01/11/2010EconTalk
Created: 6/15/2026, 9:37:51 AM

My Notes

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