Breaking Down The Fed's Pandemic Measures

The Fed has taken significant steps to support the US economy, including slashing interest rates and launching an unlimited quantitative easing program. New emergency lending facilities were introduced to stabilize markets. The Main Street lending program aimed to support small businesses but faced challenges. As COVID-19 cases rise, economic recovery remains uncertain, and the Fed's policy tools may be reaching their limits. The central bank is cautious about adopting negative interest rates, and the effectiveness of its measures is still under evaluation.

What was one of the initial actions taken by the Fed to support the US economy during the pandemic?

• Increasing the Fed funds rate

• Implementing a limited quantitative easing program

• Reducing the Fed funds rate to zero

• Introducing new taxes

What was the purpose of the emergency lending facilities announced by the Fed on March 23rd?

• To support international trade

• To reduce government spending

• To increase interest rates

• To provide $300 billion in new financing for firms

Which bank agreed to use the Main Street lending program to lend to new customers?

• Citibank

• Chase

• Bank of America

• Wells Fargo

What was a major concern as coronavirus cases surged in several states?

• The decrease in stock market volatility

• The rise in international trade disputes

• The increase in global oil prices

• The effectiveness of the Fed's monetary policy tools

What drastic measure did the Fed consider but hold off on implementing?

• Cutting rates below zero

• Increasing taxes on imports

• Reducing government subsidies

• Implementing a new stimulus package