Macro Musings with David Beckworth cover image

Bill Nelson on the Fed’s Discount Window Lending, the Overnight Reverse Repo Facility, and the Shifting Size of the Fed’s Balance Sheet

Macro Musings with David Beckworth

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The Fed's Emergency Liquidity Facility

The Fed opened two new programs so one was the bank term funding program. Under that program they're offering one year loans to banks at the fixed rate of the one year OIS swap rate plus 10 basis points and the loans are repayable without penalty. This program is is extended under section 13 3 of the Federal Reserve Act which became quite famous during the global financial crisis because it was authority the Fed hadn't really used since the depression.

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