A Financial Timeline

Frequently Asked Questions about the Financial Crisis

How has the financial crisis affected the Fed’s monetary policy?

The financial crisis has interfered with the Fed's ability to operate a conventional monetary policy. Lender-of-last-resort measures have been a primary focus. The FOMC has reduced its target for t...

With the federal funds rate near zero, is monetary policy still relevant?

Monetary policy remains potent. Even with the fed funds rate at zero, the Fed can continue to influence financial markets and the economy through open market operations and various lending programs...

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Recent News

October 24, 2008 | PNC Press Release

PNC Financial Services Group Inc. purchases National City Corporation, creating the fifth largest U.S. bank.

October 22, 2008 | Federal Reserve Press Release

The Federal Reserve Board announces that it will alter the formula used to determine the interest rate paid to depository institutions on excess reserve balances. The new rate will be set equal to the lowest FOMC target rate in effect during the reserve maintenance period less 35 basis points.

October 21, 2008 | Federal Reserve Press Release

The Federal Reserve Board announces creation of the Money Market Investor Funding Facility (MMIFF). Under the facility, the Federal Reserve Bank of New York provides senior secured funding to a series of special purpose vehicles to facilitate the purchase of assets from eligible investors, such as U.S. money market mutual funds. Among the assets the facility will purchase are U.S. dollar-denominated certificates of deposit and commercial paper issued by highly rated financial institutions with a maturity of 90 days or less.

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