Fed Gov. Duke Reflects on Journey from Community Banker to Central Banker
Much of what Federal Reserve Governor Elizabeth Duke learned during her career as a community banker has helped her in her role as a member of the Federal Reserve Board of Governors, she told students in a February 2 speech at the University of North Carolina.
Community banking experience adds value to new role
For instance, her experience with making reserve decisions for her small community bank "makes it much easier to connect the dots between Federal Reserve actions to add or withdraw reserves, bankers' decisions to manage their reserve accounts, and the resulting impact on interest rates, which in turn influence economic activity," she said.
Duke outlined several additional activities from her decades as a community banker that today add perspective to her policy advice at the Fed, including:
Fed actions helped support households, businesses
These actions helped households and businesses. Indeed, Duke has gotten feedback from many small-business owners, a number of whom said "that they could not have survived without lower rates." In November, 2010, the Fed took further steps to support the economy when it announced that it would purchase $600 billion in longer-term Treasury securities by the end of June 2011.
February 25, 2011