“Of course, shedding the debt burden would be a happy development for our country, but it would nevertheless pose a big dilemma for the Fed. Our primary lever of monetary policy was buying and selling treasury securities-Uncle Sam's IOU's. But as the debt was paid down, those securities would grow scarce, leaving the Fed in need of a new set of assets to effect monetary policy.”

Source: 2000s, The Age of Turbulence (2008), Chapter Ten, "Downturn", p. 214.

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Alan Greenspan 51
13th Chairman of the Federal Reserve in the United States 1926

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