NAFCU Journal July August 2021

17 THE NAFCU JOURNAL July–August 2021 financial issues. Planning and implemen- tation of these programs were bumpy at best, but they did lessen employment losses and helped everyday Americans through the shut-downs. However, the cost/benefit of those government deci- sions will probably be debated for years to come. Moving through 2021, the perceived necessity for this type of government support should diminish as the economy improves. Hopefully, we can say that the relief programs, at least, created a well-paved runway toward economic expansion.” Knapp: “Pandemic conditions acceler- ated structural changes to the economy and financial system that started during the 2008 financial crisis. “Fiscatary policy” is now an entrenched feature of the economic landscape. Specifically, the Fed substantially increased its purchases of U.S. Treasury securities during the pandemic, thereby enabling creation of enormous deficits that financed fiscal stimulus programs. Last year’s activation of the Fed’s section 13.3 authority also moved it beyond its traditional role as lender of last resort to banks to lender of first resort to Main Street businesses in close coordination with the U.S. Treasury—a program that ended in January. The Fed has also moved from facilitator of price discov- ery for credit through free markets to determination of the price of credit through asset purchase programs. These actions have melded fiscal and monetary policies in ways that are incon- sistent with their traditional independent roles. The fact that our current U.S. Trea- sury Secretary is a former chair of the U.S. Federal Reserve serves as anecdotal evidence that fiscatary policy is a thing. Only time will tell if this profound change has long-term implications for financial markets or the economy.” It appears at this point that improvements in employment and additional stimulus payments are helping to keep delinquency and loan losses in check. PAUL PARRISH, CEO, ONE NEVADA CREDIT UNION