Conclusion Today I have reviewed developments in specific financial markets following the introduction of Federal Reserve and other agency facilities and programs, and have considered the evolution of the major categories of credit in both the current economic downturn and past downturns. This assessment of the data suggests that these government programs have been broadly successful in relieving stresses in the key credit markets.
This success is also reflected in aggregate credit data, which indicate that most categories of household and nonfinancial-firm lending in the current recession do not appear especially weak relative to past recessions. Given the enormity of events over the past year, this result is a surprising but reassuring early indication that the combined policies have been successful at shoring up credit despite these events.