Steven Kelly is a senior research associate at the Yale Program on Financial Stability. Steven joins David on Macro Musings to discuss his work on financial stability and the role the Federal Reserve plays in it. Specifically, David and Steven discuss the Fed’s evolving role in niche financial markets such as commodities and derivatives markets, what Section 13.3 of the Federal Reserve Act says about the Fed’s basis to engage in financial markets, proposals to improve the Fed’s Standing Repo Facility (SRF), the future of stablecoins and central bank digital currencies (CBDCs) in financial markets, and much more. Transcript for the episode can be found here.   Steven’s Twitter: @StevenKelly49 Steven’s Substack: Without Warning   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   The Reserve (podcast) hosted by Kaleb Nygaard   New Bagehot Project, Yale Program on Financial Stability (YPFS)   “The Fed As Derivatives Dealer of Last Resort?” by Steven Kelly   “Could the Fed Rescue Commodities Markets?” by Steven Kelly   “Improving the Standing Repo Facility” by Steven Kelly   “Unappropriated Dollars: The Fed's Ad Hoc Lending Facilities and the Rules that Govern Them” by Lev Menand   The Fed Unbound: Central Banking in a Time of Crisis by Lev Menand   “Larry Ball on the Lehman Brothers Collapse and Its Role in the Great Recession”, Macro Musings podcast episode (2018)