Is credit policy the new normal for the Fed?


The Federal Reserve’s response to the coronavirus crisis has been forceful. Since the beginning of March, it has implemented a sequence of closely co-ordinated measures in a very short space of time. It is an unprecedented month of policy action for the central bank – and there is likely more still to come.

Most notable in its response to the economic fallout caused by the coronavirus has been the application of a number of lending facilities under Section 13(3) of the Federal Reserve Act. The

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