Federal Reserve Defends Debt Swap Lines Pointing to $4 Billion Profit

The Federal Reserve’s New York President William Dudley defended the opening of debt swap lines with Europe in front of a Congressional Committee today. Dudley said that the instrument was provided in the interests of the United States and its people, not just in the interests of the European currency and institutions. He pointed to the profitability of debt swap lines which have made a profit every time they have been opened since 1962. The interests of the United States were covered in both the profitability of the venture and the help provided to Europe. The economic backlash from a…