• The Fed has come a long way in tightening monetary policy
  • Active tool of monetary policy is interest rates, not the balance sheet
  • Fed will act to shore up financial system if needed
  • Emergency lending to banks has eased financial sector stress.
  • The USD is still the world's top reserve currency.
  • Congress must address the debt ceiling. Confident they will act.

She is not as alarmist as some of the hawks on the board.