Fed's Bowman (Voter) says liquidity framework does not look enough at bank stress

• Says discount window is a critical but underutilised liquidity backstop requiring fundamental reform.
• Says stigma, weekly aggregate disclosure and above-market rates deter discount window use.
• Notes discount window operates through primary credit for strong banks and secondary credit with stricter terms.

On the balance sheet:

• Says liquidity hoarding increases demand for reserves, requiring the Fed to maintain a larger balance sheet. 
• Notes excessive high-quality liquid asset holdings may reduce credit availability to the economy.

On Market Operations:

• Says each of the 12 Reserve Banks sets its own discount window rules and lending decisions.
• Notes fragmentation in discount window processes may exacerbate banking system fragilities.