The Federal Open Market Committee (FOMC) quickly cut the target range for the federal (fed) funds rate to the zero lower bound, citing risks to economic activity from the coronavirus (see chart below). “The TAF enabled the Federal Reserve to provide term funds to a broader range of counterparties and against a broader range of collateral than it could through open market operations… Open market operations take place when the central bank sells or buys U.S. Treasury securities in order to influence the quantity of bank reserves and the level of interest rates. The transactions are undertaken with primary dealers. o By influencing the fed funds rate, the Fed influences banks’ cost of credit… which affects the rates that banks charge on business loans and consumer loans. When the Fed conducts open market operations, it targets the federal funds rate, since that interest rate reflects credit conditions in financial markets very well. It took it from being 5% to down to 4%. Open market operations o The Fed “targets” or “influences” the interest rate in the fed funds market… but it cannot “set” the rate. The Fed undertook a process—sometimes referred to as quantitative tightening—to unwind the asset side of its balance sheet. 11. c. means by which the Fed acts as the government's banker. d. buying and selling of government securities by the Fed. It was able to inject cash, printed cash, into the economy and it's also able to lower the interest rate. Open market operations (OMOs)--the purchase and sale of securities in the open market by a central bank--are a key tool used by the Federal Reserve in the implementation of monetary policy. Open market operations are the Select one: a. buying and selling of Federal Reserve Notes in the open market. b. means by which the Fed supplies the economy with currency. 3. But with ample reserves on the liabilities side, open market operations evolved. The Federal Open Market Committee (FOMC), a committee within the Federal Reserve System (the Fed), is charged under United States law with overseeing the nation's open market operations (e.g., the Fed's buying and selling of United States Treasury securities). Open market operations consists of the buying or selling of government securities. The Fed employed both conventional and unconventional policy tools to address the economic and financial disruptions caused by the pandemic. The Federal Reserve uses open market operations to arrive at the target rate. Whatever, I could keep going, but by doing this open market operation, the Fed was able to do both of its goals. The short-term objective for open market operations is specified by the Federal Open Market Committee (FOMC). 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