The Federal Reserve has continued to address ongoing problems in interbank funding markets by expanding its existing lending facilities, increasing the quantity of term funds that it auctions to banks, and accommodating greater demand for funds from banks and primary dealers. The Federal Reserve has also implemented several important temporary facilities to alleviate the pressures on money market mutual funds and commercial paper issuers.
The Emergency Economic Stabilization Act (EESA), enacted by Congress in early October, provides critically important new tools to address financial market problems.