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The Federal Reserve Bank of New York implements monetary policy on behalf of the Federal Reserve System, as mandated by the Federal Open Market Committee. To accomplish this, the Bank targets the federal funds rate through temporary and permanent open market operations with primary dealers. Securities purchased through these operations are managed in a portfolio known as the System Open Market Account and are lent on a daily basis through the securities lending program. The Bank also implements foreign exchange policy on behalf of the System and the U.S. Treasury.

Features

Credit and Liquidity Programs and the Balance Sheet The Board of Governors of the Federal Reserve System provides detailed information about the policy tools employed to address the financial crisis.

Timelines of Policy Responses to the Global Financial Crisis Illustrating how events have unfolded, each entry contains a link to the original government announcement or a recent news source for additional information.

Over-the-Counter Derivatives Market Infrastructure Archive of press releases and statements on over-the-counter derivatives and related issues.

NEWS AND ANNOUNCEMENTS

Primary dealers list updated September 1, 2010

Minutes of August 10 Federal Open Market Committee meeting August 10, 2010

New York Fed releases reverse repo counterparties list August 18, 2010

U.S. monetary authorities did not intervene in FX markets during the second quarter August 12, 2010

New York Fed releases tentative outright Treasury operation schedule August 11, 2010

Statement regarding reinvestment of principal payments on agency debt and agency MBS August 10, 2010

FAQs: Reinvestment of principal payments on agency debt and agency MBS in Treasuries August 10, 2010

FOMC keeps target for fed funds rate at 0 to 0.25 percent August 10, 2010

Statement regarding reverse repurchase agreements August 3, 2010

Research Highlights

The Changing Nature of Financial Intermediation and the Financial Crisis of 2007-09 The authors describe the changing nature of financial intermediation in the market-based financial system, chart the course of the recent financial crisis and outline the policy responses that have been implemented by the Federal Reserve and other central banks. By Tobias Adrian and Hyun Song Shin, Staff Reports (439), March 2010

Stressed, Not Frozen: The Federal Funds Market in the Financial Crisis This paper examines the impact of the financial crisis of 2008, specifically the bankruptcy of Lehman Brothers, on the federal funds market. By Gara Afonso, Anna Kovner, and Antoinette Schoar, Staff Reports (437), March 2010

Financial Intermediaries and Monetary Economics The authors reconsider the role of financial intermediaries in monetary economics. Their findings suggest that the traditional focus on the money stock for the conduct of monetary policy may have more modern counterparts, and we suggest the importance of tracking balance sheet quantities for the conduct of monetary policy. By Tobias Adrian and Hyun Song Shin, Staff Reports (398), October 2009, Revised February 2010

Why Are Banks Holding So Many Excess Reserves? A careful examination of the balance sheet effects of central bank actions shows that the high level of reserves is simply a by-product of the Fed’s new lending facilities and asset purchase programs. By Todd Keister and James J. McAndrews, Current Issues in Economics and Finance (15) 8, December 2009