Fed Opens Multiple Taps to Keep Liquidity Flowing and Dampen Coronavirus Disruption

Over the last several weeks the Board of Governors of the Federal Reserve (the Fed) has
taken a series of actions and rolled out a wide range of tools to offset the funding difficulties and liquidity challenges of financial institutions, corporate borrowers and municipalities brought on by the coronavirus pandemic (see Appendix, page 9 for details on key measures). The Fed's swift and far-ranging actions surpass those it took during the global financial crisis of 2007-08 and signal its intent to take all available measures to maintain liquidity in the financial system, keep credit available and prevent funding dislocations from raising insolvency risk, further weakening the economy. Read more