The Federal Reserve has launched an array of programs aimed at helping the markets and economy through the coronavirus crisis. The programs are considerably more aggressive than what happened during the 2008-09 financial crisis.
seems destined to take it beyond the money-printing initiatives of the previous crisis, and its alphabet-soup array of programs is greater in scope than even all the programs it had launched during the crisis more than a decade ago.
The central bank's efforts in that regard, taken within a month's time of when the coronavirus began chocking financial markets, easily beats the timeline during the financial crisis.Indeed, the Fed starting in December 2008 increased its bond holdings by $3.7 trillion, pushing the total balance sheet past $4.5 trillion in operations that spanned six years. In a since-abandoned effort to run off some of those holdings, the total slipped below $3.8 trillion at one point.
Outside of the dollar force of QE, the Fed's amalgam of programs aimed at freeing up frozen credit markets also is more ambitious than anything it did during the Great Recession.While programs including the Term Asset-Backed Loan Facility and help for the commercial paper and money markets are familiar to financial crisis historians, the Fed has added to its outreach.
To underline the importance of getting fiscal and monetary forces working together, the Fed announced a vague proposal targeted to Main Street small business lending that will need help from whatever Congress passes.
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