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It’s Not Your Mother and Father’s Monetary Policy Anymore: The Federal Reserve and Financial Crisis Relief

Data Tables

Return to It’s Not Your Mother and Father’s Monetary Policy Anymore: The Federal Reserve and Financial Crisis Relief

Table 1: Tools of Monetary Policy
Traditional Tools of Monetary Policy
Open Market Operations The buying and selling of U.S. Treasury and federal agency securities with the objective of attaining the FOMC’s target for the federal funds rate.
Discount Rate The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank.
Reserve Requirements The amount of funds that a depository institution must hold in reserve as vault cash or on deposit with Federal Reserve Banks against specified deposit liabilities.
Monetary Policy Tools Initiated During the Financial Crisis
Lending to financial institutions: These tools provided short-term liquidity to banks and other financial institutions.
Announced
Closed
Term Auction Facility (TAF) Provided one- and three-month loans to eligible depository institutions through an auction process
12/12/2007
Final auction was 3/8/2010
Term Securities Lending Facility (TSLF)* Allowed primary dealers to borrow Treasury securities in exchange for less liquid assets
3/11/2008
2/1/2010
Primary Dealer Credit Facility (PDCF)* Provided overnight loans to primary dealers
3/17/2008
2/1/2010
Lending directly to key credit markets: These tools provide liquidity directly to borrowers and investors.
Announced
Closed
Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF)* Assisted money market mutual funds to sell high quality asset-backed commercial paper (ABCF)
9/19/2008
2/1/2010
Commercial Paper Funding Facility (CPFF)* Provided a liquidity backstop to U.S. issuers of commercial paper. Financed the purchase of highly rated unsecured and asset-backed commercial paper from eligible issuers via eligible primary dealers.
10/14/2008
2/1/2010
Money Market Investor Funding Facility (MMIFF)* Supported a private-sector program to provide liquidity to money market mutual fund investors
10/21/2008
10/30/2009
Term Asset-Backed Securities Loan Facility (TALF)* Supported the issuance of asset-backed securities (ABS) collateralized by consumer, small business, and various other types of loans
11/25/2008
Closed for new loan extensions on June 30, 2010.
Tools for managing the quantity of reserve balances held by depository institutions
Announced
Interest on Required Balances and Excess Balances Permits the Federal Reserve to control the aggregate amount of reserve balances held by depository institutions
10/6/2008
Term Deposit Facility (TDF) Removes funds from participating financial institutions for the life of the deposit, thereby draining reserves from the banking system
4/30/2010

*Note: Credit extended under the “unusual and exigent circumstances” provisions of Section 13(3) of the Federal Reserve Act.

Sources: http://federalreserve.gov/monetarypolicy/ External Link, Federal Reserve Bank of Philadelphia 2008 Annual Report

Return to It’s Not Your Mother and Father’s Monetary Policy Anymore: The Federal Reserve and Financial Crisis Relief

Table 2: Simplified Balance Sheets for the Federal Reserve System
Panel 1: July 9, 2008
Panel 2: October 15, 2008
Assets ($Billions)
Liabilities and Capital ($B)
Assets ($Billions)
Liabilities and Capital ($B)
Treasury Securities$479 Federal Reserve Notes Outstanding$796 Treasury Securities$477 Federal Reserve Notes Outstanding$819
Agency Securities$0 Reserve Deposits$11 Agency Securities$14 Reserve Deposits$272
Mortgage-Backed
Securities$0
Treasury Deposits$4 Mortgage-Backed
Securities$0
Treasury Deposits$523
Loans$163 All other liabilities$ 49 Loans$701 All other liabilities$117
All Other Assets$258 Capital & Surplus$ 40 All Other Assets$581 Capital & Surplus$42
TOTAL$900 TOTAL$900 TOTAL$1773 TOTAL$1773
Panel 3: December 10, 2008
Panel 4: September 29, 2010
Assets ($Billions)
Liabilities and Capital ($B)
Assets ($Billions)
Liabilities and Capital ($B)
Treasury Securities$476 Federal Reserve Notes Outstanding$838 Treasury Securities$812 Federal Reserve Notes Outstanding$955
Agency Securities$13 Reserve Deposits$778 Agency Securities$154 Reserve Deposits$982
Mortgage-Backed
Securities$0
Treasury Deposits$446 Mortgage-Backed
Securities$1079
Treasury Deposits$258
Loans$1019 All other liabilities$115 Loans$19 All other liabilities$74
All Other Assets$712 Capital & Surplus$ 43 All Other Assets$277 Capital & Surplus$72
TOTAL$2220 TOTAL$2220 TOTAL$2341 TOTAL$2341

Source: Federal Reserve Board Statistical Release H.4.1: Factors Affecting Reserve Balances

Note: Data has been rounded to simplify the figures shown in the table.

Return to It’s Not Your Mother and Father’s Monetary Policy Anymore: The Federal Reserve and Financial Crisis Relief