It appears the housing and financial meltdown caught the Federal Reserve by surprise. Transcripts of meetings held in 2006, during Fed chairman Ben Bernanke's first year, were released yesterday. They include comments from Treasury secretary Timothy Geithner – then a Fed official – that "collateral damage" from housing could be avoided.
Binyamin Appelbaum, New York Times Washington correspondent
Enjoy The Madeleine Brand Show? Try KPCC’s other programs.