Economics
Fed Unbound: All the Central Bank’s Virus-Linked Lending Moves
- Total Fed lending falls as private credit markets function
- All nine emergency lending programs remain open for business
Photographer: Andrew Harrer/Bloomberg
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The Federal Reserve’s success in restoring order to credit markets can be measured in the shrinking size of assets held by most of its nine emergency pandemic loan programs. Only its Main Street facility attracts criticism for failing to lend more to struggling small- and mid-sized companies damaged by the coronavirus.
The Fed’s historic response, backed with approval and funds from the U.S. Treasury Department, began in March as short-term credit markets ground to a halt. Most of the programs sought to keep financial markets functioning. But in unprecedented steps, some also provided direct loans to businesses, states and local governments.