Fed Plans To Dispense Helicopter Money

Bloomberg on Aug. 1 interviewed Simon Potter, who led the Federal Reserve Bank of New York’s markets group (Plunge Protection Team), and Julia Coronado, formerly an economist for the Fed’s Board of Governors. Their plan for the Fed is called “recession insurance bonds” which it, using central bank digital currency, would place directly into various business and household accounts when recession “triggers” were reached. “Recession insurance bonds could activate payments and bypass wrangling in a crisis,” Bloomberg sums up.