How the Federal Reserve’s Using Its $4 Trillion in Lending Power

The Federal Reserve has announced major steps to stabilize financial markets, businesses, and municipal governments, using $454 billion in emergency lending authority provided by Congress.

The funds, which were provided to the Treasury Department’s Exchange Stabilization Fund (ESF) under the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act (Public Law 116-36; see BGOV Bill Summary), amplify the Fed’s power to make broad interventions in various sectors of the economy. It had already established several credit programs, referred to as facilities, under section 13(3) of the Federal Reserve Act before the CARES Act became law on ...