Janet L. Yellen, President and CEO of the Federal Reserve Bank of San Francisco gave a speech yesterday citing "Improved Liquidity in the Money Markets". Yellen says, "To preview my answers, I will argue that the suite of programs that the Fed has already announced or put in place are an appropriate and creative response to alleviate strains from the ongoing credit crunch. The evidence suggests to me that they have improved liquidity in the money markets and lowered the cost of private credit. Going forward, asset purchases and lending programs could be expanded and extended to additional sectors impacted by the credit crunch." See also Bloomberg's "Fed Must Have 'Exit Strategy' for Loan Programs, Yellen Says".
