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WASHINGTON (AP) - Federal Reserve officials were uncertain about the long-term economic impact from the 2001 terrorist attacks but they were united in a belief that they had to act decisively to restore confidence, according to transcripts of their discussions released Tuesday.
Those transcripts showed Fed officials confronting a multitude of issues following the Sept. 11, 2001, attacks that destroyed the World Trade Center towers in New York City, forced the closing of major stock exchanges for four days and disrupted financial operations at some of the country's largest banks.
In response to those events, the Fed flooded the financial system with billions of dollars in extra cash to make sure that banks would have sufficient reserves to meet obligations.
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