The COVID-19 Pandemic and the Fed’s Response

Michael Fleming, Asani Sarkar and Peter Van Tassel

No 20200415, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: The Federal Reserve has taken unprecedented actions to mitigate the effects of the COVID-19 pandemic on U.S. households and businesses. These measures include cutting the Fed’s policy rate to the zero lower bound, purchasing Treasury and mortgage-backed securities (MBS) to promote market functioning, and establishing several liquidity and credit facilities. In this post, we briefly review the developments motivating these actions, summarize what the Fed has done and why, and compare the Fed’s response with its response to the 2007-09 financial crisis.

Keywords: COVID-19; coronavirus; pandemic; Federal Reserve (search for similar items in EconPapers)
JEL-codes: E52 (search for similar items in EconPapers)
Date: 2020-04-15
New Economics Papers: this item is included in nep-ban, nep-fmk, nep-mac and nep-mon
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