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  • Fed Weighs Debt Sales of Its Own; Move Presents Challenges

    12/10/2008 6:01:30 PM PST · by rabscuttle385 · 23 replies · 541+ views
    The Wall Street Journal ^ | 2008-12-10 | Jon Hilsenrath & Damian Paletta
    The Federal Reserve is considering issuing its own debt for the first time, a move that would give the central bank additional flexibility as it tries to stabilize rocky financial markets. Government debt issuance is largely the province of the Treasury Department, and the Fed already can print as much money as it wants. But as the credit crisis drags on and the economy suffers from recession, Fed officials are looking broadly for new financial tools. Fed officials have approached Congress about the concept, which could include issuing bills or some other form of debt, according to people familiar with...