Fed’s Kotcherlakota: Central banks could guarantee government debts in some cases

In remarks to an academic audience, the Fed’s Kotcherlakota, one of the dissenters to recent policy actions from the Fed, says central banks It may be optimal for central banks to guarantee the debts of fiscal authorities under certain situations.

Not sure what those situations could be; I suspect alien invasion maybe one…

Sounds like a hypothetical academic discussion, judging by news reports.

Equities are firming late in the day as hopes for an ESFS leverage plan grow. Support is building in the 1.3415/25 region on the intraday charts. Resistance is thick between 1.3530/50.