Our facilities were designed as backstops to private credit markets, not as replacements. Once lenders and investors understood that borrowers would have access to emergency loans, conditions improved. For example, yields and spreads on municipal bonds started to fall dramatically following the announcement that some municipal notes would be eligible at our money fund facility and that we were opening the Municipal Liquidity Facility.
In the case of monetary policy, that framework is the medium-term inflation target that was adopted a quarter-century ago. This framework inherently points policy in the direction of supporting growth when that is needed, because demand would otherwise be insufficient. Of course, there are other considerations, including debt and asset prices as highlighted in the session title.