Fed Cuts Rates to Near Zero in Emergency Move

The video discusses the Federal Reserve's response to stress in the US Treasury and agency mortgage-backed securities markets. It outlines the purchase of $500 billion in Treasury securities and $200 billion in agency mortgage-backed securities to ensure market stability and credit flow. The Federal Reserve also reduced the interest rate on discount window loans and coordinated with major central banks to address global dollar funding pressures. Additional measures include eliminating reserve requirements for banks and encouraging the use of intraday credit. These actions aim to support the economy during the coronavirus pandemic.

Explain the significance of the discount window in the banking system.

What measures were taken to address potential pressures in dollar funding markets?