During the Covid crisis, the Fed issued a large quantity of money supply and interest rate has great pressure to fall below zero. What did Fed do to maintain the interest rate above zero and how does this approach work? (refer to image)

ENGR.ECONOMIC ANALYSIS
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During the Covid crisis, the Fed issued a large quantity of money supply and interest rate has great pressure to fall below zero. What did Fed do to maintain the interest rate above zero and how does this approach work? (refer to image)

Usage of the Fed's reverse repo facility hits a record
Money parked at the Federal Reserve through the reverse repo facility ($bn)
500
400
300
200
100
2013
2015
2016
2017
2018
2019
2020
2021
Federel Des ue Ples
ahero
Transcribed Image Text:Usage of the Fed's reverse repo facility hits a record Money parked at the Federal Reserve through the reverse repo facility ($bn) 500 400 300 200 100 2013 2015 2016 2017 2018 2019 2020 2021 Federel Des ue Ples ahero
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