Although growth was constrained in 2009 on the basis of tighter policies, improved economic conditions have paved the way for monetary policy easing to stimulate growth in 2010 and beyond. There are indications of a rebound in business and consumer confidence, as well as increasing investor confidence in the economy.
Liabilities included currency held by the public and a relatively small volume of reserve balances. For more on the Fed’s balance sheet, see www.federalreserve.gov/monetarypolicy/bst_fedsbalancesheet.htm. 6  For information on the Federal Reserve’s credit and liquidity programs that were implemented in response to the financial crisis, see www.federalreserve.gov/monetarypolicy/bst_crisisresponse.htm on the Board’s website.