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Unformatted text preview: See a sample reprint in PDF format. Order a reprint of this article now FEBRUARY 10, 2010, 2:29 P.M. ET Dow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com Bernanke Outlines Exit Strategy By LUCA DI LEO Federal Reserve Chairman Ben Bernanke on Wednesday outlined the likely path the central bank would take to tighten credit once the economy has recovered enough. In prepared testimony for the House Financial Services Committee, the Fed chief said the interest rate paid to banks on excess reserves held at the central bank may for a time replace the federal-funds rate as the main operating target for policy. As part of the Fed's plans to wind down its emergency liquidity measures, Mr. Bernanke also said the central bank could "before long" increase the spread, or difference, between the discount rate that it charges banks for emergency loans and the federal-funds rate. The spread is now a quarter percentage point, down from a full pointemergency loans and the federal-funds rate....
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This note was uploaded on 05/22/2010 for the course ECON 110D taught by Professor Schmitt-grohe during the Spring '08 term at Duke.
- Spring '08