The remainder of this paper highlights some possible actions that may better promote a sound and dynamic financial system. Some of these actions sit directly with the Bank and progress is being made. However, in doing so, we are acutely aware that just as markets can fail, so can regulatory interventions.
Our programs served as a backstop to key credit markets and helped restore the flow of credit from private lenders through normal channels. We deployed these lending powers to an unprecedented extent last year. Our emergency lending powers require the approval of the Treasury and are available only in very unusual circumstances. Many of these programs were supported by funding from the CARES Act.