Exacerbated by the problems in short-term funding markets and at bond funds, market functioning and liquidity deteriorated, and issuance of new debt in long-term markets slowed markedly or stopped altogether. Effectively, the ability of creditworthy households, businesses, and state and local governments to borrow, even at elevated interest rates, was threatened.
In light of these unusual and exigent circumstances, the Federal Reserve took a series of emergency actions to support liquidity in markets and the flow of credit to households, businesses, and communities.