Accordingly, in the months ahead we will be closely monitoring inflation expectations and the inflation situation more generally. To address these developments, the Federal Reserve has moved in two main areas.
To help relieve the pressures in the interbank markets, the Federal Reserve – among other actions – recently introduced a term auction facility (TAF), through which prespecified amounts of discount window credit can be auctioned to eligible borrowers, and we have been working closely and cooperatively with other central banks to address market strains that could hamper the achievement of our broader economic objectives.