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Particularly notable were the actions taken by the federal reserve (fed) under its broad emergency lending authority, section 13(3) of the federal reserve act (12 u.s.c Interest rates were set at a markup over different maturities of the london interbank offered rate (libor) or the federal funds rate, depending on the type of loan and underlying collateral. In an emergency meeting on sunday, march 15, the federal open market committee lowered the fed's interest rate target to effectively zero and pledged to use its full range of tools to support the flow of credit to households and businesses.
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Low interest rates, the federal reserve's asset purchases, the establishment of emergency lending facilities, and other extraordinary actions, together with fiscal policy, continued to support the flow of credit in the economy and smooth market functioning. Currently, the benchmark rate is now. This report examines (1) the federal reserve's oversight and monitoring of the cares act facilities, (2) trends in the credit markets that the facilities targeted, and (3) the status and performance of main street lending program loans.
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In an emergency move sunday, the federal reserve announced it is dropping its benchmark interest rate to zero and launching a new round of quantitative easing.
Following the september and october 2025 fomc meetings, the federal reserve policymakers announced a 25 basis point rate cut after each of those meetings
