Kohn defends Fed lending against "fiscal" charges

The Federal Reserve's efforts to halt a financial meltdown with lending programmes targeted at specific markets should not be construed as fiscal aid, Don Kohn, the vice chairman of the central bank, has claimed.

The Fed has faced criticism - including from dissenters from within its own ranks - that it has stepped beyond its ambit and undertaken operations that would have been best left to the Treasury, or at least explicitly backed by them.

However, Kohn on Saturday dismissed these claims b