the treasury must always work closely together on operations issues. see jerome h. powell ( 2021 ), “ getting back to a strong labor market, ” speech delivered at the economic club of new york ( via webcast ), february 10, https : / / www. federalreserve. gov / newsevents / speech / powell20210210a. htm. see board of governors of the federal reserve system ( 2018 ), “ fiscal agency services, ” webpage, https : / / www. federalreserve. gov / paymentsystems / fisagy _ about. htm. - 4the second form of interaction involves the treasury and the federal reserve working together on certain macroeconomic policy issues. i will discuss two areas where differing degrees of interaction could occur, emergency lending facilities and economic stabilization, and one area where that interaction should not, and does not, occur — debt financing. first, let me talk about emergency lending facilities authorized by section 13 ( 3 ) of the federal reserve act. 9 during a financial crisis or extreme market malfunctioning, cooperation between the fiscal and monetary authorities is imperative. an important role of a central bank is to step in and provide liquidity to ensure market functioning during those “ unusual and exigent circumstances. ” 10 and under those circumstances, since the passage of the dodd - frank wall street reform and consumer protection act, the secretary of the treasury is required to approve any new programs under the federal reserve ’ s emergency lending authority. as i mentioned, the federal reserve and the treasury undertook this kind of coordinated response a year ago, as uncertainty about the economic effect of the virus caused markets to begin seizing up. many section 13 ( 3 ) facilities were established to support the flow of credit to households, businesses, and state and local governments. all of these emergency programs required the approval of the secretary of the treasury, and many of them were supported by the treasury ’ s financial backing, using funds specifically appropriated by the congress for these facilities in the coronavirus aid, relief, and economic security act. see 12 u. s. c. § 343 ( 3 ). see section 13 ( 3 ) of the federal reserve act ( 12 u. s. c. § 343 ( 3 ) ), available on the board ’ s website at https : / / www. federalreserve. gov / aboutthefed / section13. htm ( quoted text in paragraph ( 3 ) (

michelle w bowman : confirmation hearing testimony by ms michelle w bowman, member of the board of governors of the federal reserve system, before the committee on banking, housing, and urban affairs, us senate, washington dc, 5 june 2019. * * * chairman crapo, ranking member brown, and members of the committee, it has been just over a year since this committee first recommended my nomination as a federal reserve board governor. while i am not the first community banker to serve on the board, i am humbled by the opportunity you gave me to serve as the first governor to fill the role the congress designated for someone with community banking experience on the federal reserve board. i am deeply honored the president has renominated me to serve in that capacity. i am also grateful to my family for their continued support. my husband, wes, and our children, jack and audrey, are here with me today. the rest of my family are watching from home in kansas. since my confirmation last year, i have worked to fulfill my unique role on the board by traveling widely and listening closely to community bankers, consumers, small business owners, and community leaders. i have visited with farmers, workers, and business leaders from across the country to discuss the economy. i am making sure these unique perspectives are represented in the federal reserve ’ s deliberations and decision making on both monetary policy and regulatory matters. during my time at the board, i have also drawn on my experience as a community banker and regulator to ensure that our work is guided by a deep understanding of the practical realities confronting bankers and the communities they serve across the country. the work done after the crisis to address the weaknesses in the u. s. financial system and ensure its future resilience was essential. however, during my time at my family ’ s community bank, i saw firsthand how the regulatory changes created in the aftermath of the crisis impacted community financial institutions. small, solid institutions like this one are essential to so many of our citizens and communities. as regulators, we need to ensure that we are not imposing unnecessary burdens on community banks. that is why one of my priorities as a governor has been to appropriately tailor our supervision and regulation to the size, complexity, capacity, and risks posed by an institution. to further this effort, i recently formed a working group of experts from across the federal reserve system to launch a comprehensive review of our supervisory work with smaller regional and community banks. while serving as the kansas state bank commissioner