Status Updates From Central Banking 101

Monetary policy can impact economic activity through interest rates, but not all economic actors are interest rate sensitive

[on capitalizing off crisis]

During the 2008 financial crisis the Fed ultimately decided to lend to foreign banks by establishing central bank swap lines with a roster of friendly foreign banks in an arrangement that allowed the Fed to insulate itself from potential credit losses. This ended the run on the global dollar system but also made the Fed the world's central bank.

“The Fed is in effect the world’s central bank and ultimate backer of the global dollar banking system”