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1 1 (February 9, 2021)

handle is hein.crs/govecce0001 and id is 1 raw text is: Congressional .Research Service The Size of Federal Reserve COVID-19 Programs February 9, 2021 In response to the financial and economic disruption caused by the Coronavirus Disease 2019 (COVID- 19) pandemic, the Federal Reserve (Fed) acted as lender of last resort to broad swaths of the financial system. This Insight presents data on the size of the Fed's response, which peaked at $793 billion in April 2020. CRS Report R46411, The Federal Reserve's Response to COVID-19: Policy Issues, provides a full description of the facilities and actions covered below. Section 13(3) Facilities The Fed created a series of temporary programs in response to the pandemic using its emergency authority from Section 13(3) of the Federal Reserve Act. This was the third time the Fed used these powers extensively following the Great Depression and the 2007-2009 financial crisis. The first wave of programs attempted to stabilize overall financial market conditions, which experienced illiquidity at the onset of the pandemic. The Commercial Paper Funding Facility (CPFF), Primary Dealer Credit Facility (PDCF), and Money Market Mutual Fund Liquidity Facility (MMLF) became operational between March 20 and April 14. These facilities supported shorter-term credit markets. Later programs focused on longer-term credit markets, targeting groups that were harmed by the pandemic. These programs-the Paycheck Protection Program Liquidity Facility (PPPLF), Secondary Market Corporate Credit Facility (SMCCF), Term Asset-Backed Securities Loan Facility (TALF), Municipal Liquidity Facility (MLF), and Main Street Lending Program (MSLP)-became operational between April 16 and September 4. Of the second-wave programs, all but the PPPLF were backed by CARES Act (P.L. 116-136) funding and permanently closed by P.L. 116-260. The first wave programs and the PPPLF are scheduled to expire March 31, 2021, but could be extended again. Assistance outstanding under 13(3) programs peaked at about $197 billion on April 15, 2020 (see Figure 1). Only the three first-wave programs were operational at that point and accounted for the entire amount outstanding. Within one week, outstanding assistance under those facilities had more than halved, as financial conditions improved rapidly. Outstanding assistance under all of the facilities hovered around $100 billion for the rest of 2020 as use of those three facilities fell while the use of the other facilities rose. In the second half of 2020, the largest program was the PPPLF. Congressional Research Service https://crsreports.congress.gov IN11597 CRS INSIGHT Prepared for Membersand Committeesof Congress

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