Critical Issues
Background:
The Fed has significantly broadened its policy making repertoire during the financial crisis and ensuing economic recession. After slashing the policy rates to nearly zero, the Fed turned to more unconventional policy measures such as directly purchasing asset-backed securities and Treasury bonds with the aim of lowering long-term interest rates. The Fed's balance sheet has expanded in size and deteriorated in quality, raising concerns about the difficulty of rolling back the Fed's monetary easing.
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Associated Readings
Analysis
Federal Reserve Board
Jun 25, 2009
Federal Reserve announces extensions of and modifications to a number of its liquidity programs
Analysis
Federal Reserve Board
July 2009
Federal Reserve Credit and Liquidity Programs and the Balance Sheet - Report
Opinions
Federal Reserve Bank of Dallas
Danielle DiMartino, John V. Duca and Jessica J. Renier
Apr 02, 2009
Fed Confronts Financial Crisis by Expanding Its Role as Lender of Last Resort
Analysis
Securities Industry and Financial Markets Association
2009
Summary of the various US federal facilities
Analysis
Federal Reserve Board
Feb 24, 2009
Fed's New Info Website: Credit and Liquidity Programs and the Balance Sheet