In addition, through our purchases of agency debt and mortgage-backed securities, the Federal Reserve is lowering the cost of borrowing for mortgages as well as creating an outlet for loans that are originated by banks and nonbanks and securitized by the agencies.
1 Most recently, the Federal Reserve, in conjunction with the Treasury, has established the Term Asset-Backed Securities Loan Facility, or TALF, which uses capital provided by the Treasury in combination with liquidity provided by the Federal Reserve to enhance the availability of credit to households and businesses.