What is Term Auction Facility (TAF)?

Term Auction Facility is a monetary policy programme created by the Federal Reserve in December 2007.
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Term Auction Facility is a monetary policy programme created by the Federal Reserve in December 2007.

The Fed’s aim was to help increase liquidity in the US credit markets by helping struggling banks to get access to extra funds. These banks can then loan out that money to businesses and consumers.

The central bank essentially auctioned out short-term loans to interested banking institutions.

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