The Federal Reserve has announced several steps to enhance the effectiveness of its existing liquidity facilities, including the introduction of longer terms to maturity in its Term Auction Facility. In association with this change, the European Central Bank and the Swiss National Bank are adapting the maturity of their operations.
The Federal Reserve has taken the following actions:
- Extension of the Primary Dealer Credit Facility (PDCF) and the Term Securities Lending Facility (TSLF) through January 30, 2009.
- The introduction of auctions of options on $50 billion of draws on the TSLF.
- The introduction of 84-day Term Auction Facility (TAF) loans as a complement to 28-day TAF loans.
- An increase in the Federal Reserve's swap line with the European Central Bank to $55 billion from $50 billion.
See the Board’s press release for full details.