These preferences are likely to be especially strong in current circumstances, so that longterm asset prices rise and yields fall as the Federal Reserve acquires a significant portion of the outstanding stock of securities held by the public. Against this general background, let me address some questions about our operations. BIS Review 48/2009  3  Have they been effective?
Yes, I believe they have helped ease financial conditions, though they can't address all the problems in financial markets. And the situation in financial markets and the economy would have been far worse if the Federal Reserve hadn't taken the actions we did in supplying liquidity as well as lowering our federal funds rate target.