To support the longer-term financing that is critical to economic activity, the Federal Reserve, in cooperation with the Department of the Treasury and using equity provided for that purpose under the CARES Act, announced a number of emergency lending facilities under section 13(3) of the Federal Reserve Act.
In addition, market stakeholders have had to adapt to the same changing conditions. We often describe this in the context of a risk-on, risk-off [stance] or money is coming in or money is leaving. Here, perception and herd behavior matter, which is yet another layer of challenge to our jobs.