On Monday, The Federal Reserve Board announced it will extend its Paycheck Protection Program Liquidity Facility (PPPLF) until June 20, 2021. The program, which intends to support employment levels by giving credit to businesses partially on the condition they retain employees, has been considered quite effective in its aims. One public relations problems of the program was that several larger companies were found to have taken the funds. Treasury Secretary Yellen approved the extension.

The Commercial Paper Funding Facility, the Money Market Mutual Fund Facility and the Primary Dealer Credit Facility have been pretty lightly used since Summer. They will expire as scheduled on March 31st. Hopefully we won’t need anything like them anytime soon!

The Federal Reserve has a lot more duties than monetary policy. They employ A LOT of economists, bank supervisors, and a lot of other talented professionals who often don’t get as much visibility but nonetheless produce some highly useful, and interesting research and writing. One important piece of research is the Beige Book, so named for its color. It is intended to characterize the changes in condition since the last report. There’s sophisticated and diverse collection methods implemented at the regional level. It’s also ...

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