Other
Reverse Repurchase Agreement Program
Date:
March 8, 2010
Policy Area:
Financial Sector Policy
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Other The New York Federal Reserve announced a new Reverse Repurchase Agreement Program to reduce some of the liquidity in financial markets. Under the program, the Fed will sell securities from it's portfolio with agreements to repurchase them at later dates. This is an additional sign of tightening from the Fed, in light of last month's increase in the discount rate from 0.5 to 0.75 percent.
Notes:
Purchase of Long-Term Treasury Bonds
Date:
March 18, 2009
Policy Area:
Monetary Policy
Economic Target:
Government and GSEs
Action Type:
Other
Amount Spent:
$1,327.69 billion On 3/19/2009 The Federal Open Market Committee announced that the Fed would purchase up to $300 billion in "longer term" Treasury securities. This would have the effect of driving down interest rates on these securities and various types of loans.
This action was taken in conjunction with the Fed's decision to increase its purchase of federal agency debt and mortgage-backed securites.
Notes:
Maximum amount is currently unknown. Amount spent as of 1/23/2013 (http://www.clevelandfed.org/research/data/credit_easing/index.cfm). Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Supplemental Financing Program to Federal Reserve
Date:
September 17, 2008
Who:
Treasury
Policy Area:
Monetary Policy
Economic Target:
Government and GSEs
Action Type:
Other
Amount Spent:
$5.00 billion At the request of the Federal Reserve, The Treasury will market a separate, new line of Treasury bills (short term securities) to help fund the Federal Reserve's actions taken in response to the economic and financial crisis.
In a release on 2/23/2010, the Treasury announced that the Treasury will increase the balance of the program from the current $5 billion to $200 billion, a level maintained between February and September 2009.
Notes:
Maximum amount is unlimited. Amount spent reflects value of bills outstanding as of 2/17/2010. Deficit impact unknown.
US Central Federal Credit Union Capital Injection
Date:
January 28, 2009
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Other
Maximum Amount:
$1.00 billion
Amount Spent:
* $1.00 billion The National Credit Union Administration provided the U.S. Central Federal Credit Union with a $1 billion capital note to help cover anticipated losses on mortgage and asset-backed securities. Funds for the note were obtained from the agency's National Credit Union Share Insurance Fund.
Notes:
Deficit impact currently unknown, although regulators have stated they will increase insurance fees to cover the note's cost.
