The Covid-19 Crisis and the Federal Reserve's Policy Response

23 Pages Posted: 14 Jun 2021 Last revised: 12 Jul 2021

See all articles by Richard Clarida

Richard Clarida

Board of Governors of the Federal Reserve System

Burcu Duygan-Bump

Board of Governors of the Federal Reserve System

Chiara Scotti

Board of Governors of the Federal Reserve System

Date Written: June 1, 2021

Abstract

The COVID-19 pandemic and the mitigation efforts put in place to contain it delivered the most severe blow to the U.S. economy since the Great Depression. In this paper, we argue that the Federal Reserve acted decisively and with dispatch to deploy all the tools in its conventional kit and to design, develop, and launch within weeks a series of innovative facilities to support the flow of credit to households and businesses. These measures, taken together, provided crucial support to the economy in 2020 and are continuing to contribute to what is expected to be a robust economic recovery in 2021.

JEL Classification: E40, E50

Suggested Citation

Clarida, Richard and Duygan-Bump, Burcu and Scotti, Chiara, The Covid-19 Crisis and the Federal Reserve's Policy Response (June 1, 2021). FEDS Working Paper No. 2021-35, Available at SSRN: https://ssrn.com/abstract=3865424 or http://dx.doi.org/10.17016/FEDS.2021.035

Richard Clarida (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Burcu Duygan-Bump

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States
2029124663 (Phone)

Chiara Scotti

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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