Through a series of lending programs, and in coordination with steps taken by the Treasury, the Federal Reserve helped restore confidence in both money market mutual funds and the commercial paper market.
Inflation The third topic that I want to cover is inflation. After many years in which inflation was very low, it has recently increased sharply in the United States and Europe in the wake of the pandemic. In the United States, CPI inflation is currently at 6.8 per cent, the highest rate in almost four decades (Graph 13).