Monetary Policy
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:
Supplemental Financing for IMF
Date:
June 24, 2009
Who:
Treasury
Policy Area:
Monetary Policy
Economic Target:
Government and GSEs
Action Type:
Loans
Maximum Amount:
$75.00 billion
Amount Spent:
$75.00 billion
Deficit Impact:
$4.97 billion As part of the Supplemental Appropriations Act (H.R. 2346), signed into law on 6/24/2009, Congress and the President agreed to add $75 billion in Special Drawing Rights (SDRs) at the International Monetary Fund. The funds will remain "available until expended" to buffer the IMF's reserves.
Notes:
Deficit impact of $75 billion increase in SDRs is estimated to cost the U.S. government $4.973 billion.
Foreign Currency Swap Lines
Date:
December 12, 2007
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Currency Swap
Maximum Amount:
$286.00 billion
Amount Spent:
$8.07 billion Currency swaps between the Fed and other foreign central banks are intended to increase foreign currency liquidity and allow for the provision of U.S. dollar funding abroad.
Since December of 2007, the Fed has announced several new and expanded currency exchanges with numerous foreign central banks. The below currency swaps expired in February 2010. However, on May 9, 2010 the Fed reauthorized the use of foreign currency swap lines through January 2011 to help add liquidity to global markets following European debt fears.
Source:
See links within table for individual Fed releases on each action.
Notes:
Maximum amount is total amount of all unexpired swap arrangements. Amount spent is reported from Fed's balance sheet and current as of 1/16/2013. Maximum swap amounts are listed in dollar exchange rates current at the time the action was announced. 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.
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.
Interest Rate Cuts: 4.25% to 3.5%
Date:
January 22, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 75 basis point reduction in federal funds rate
Source:
Notes:
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.
Interest Rate Cut: 3.5% to 3%
Date:
January 30, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 50 basis point reduction in federal funds rate.
Source:
Notes:
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.
Interest Rate Cut: 3% to 2.25%
Date:
March 18, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 75 basis point reduction in federal funds rate.
Source:
Notes:
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.
Interest Rate Cut: 2.25% to 2%
Date:
April 30, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 25 basis point reduction in federal funds rate.
Source:
Notes:
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.
Interest Rate Cut: 2% to 1.5%
Date:
October 8, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 50 basis point reduction in federal funds rate coordinated with other central banks, including the Bank of Canada, the Bank of England, the European Central Bank, Sveriges Riksbank and the Swiss National Bank.
Source:
Notes:
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.
Interest Rate Cut: 1.5% to 1%
Date:
October 29, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 50 basis point reduction in federal funds rate.
Source:
Notes:
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.
