Unlike some central banks, and barring changes to current law, the Fed is relatively restricted in its ability to buy private securities 12 directly. However, the Fed does have broad powers to lend to the private sector indirectly via banks, 13 through the discount window.
Therefore a second policy option, complementary to operating in the markets for Treasury and agency debt, would be for the Fed to offer fixed-term loans to banks at low or zero interest, with a wide range of private assets (including, among others, corporate bonds, 14 commercial paper, bank loans, and mortgages) deemed eligible as collateral.