The Federal Reserve's ability to conduct open market operations, make discount window loans, and provide funds intraday to key payments system participants are unique tools necessary to ensure that the financial system stays liquid. Our monetary policy experience and responsibilities afford us valuable insights into how financial disruptions may be affecting the real economy.
Our dual role as both a payments system participant and a payments system supervisor helps us manage problems that arise in this key segment of the financial system. Finally, for a variety of reasons, the Federal Reserve has developed extensive relationships with foreign central banks and bank supervisors.