Yesterday, the Federal Reserve announced that it “will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability.” The Federal Reserve’s goal is to “support the functioning of financial markets and stimulate the economy through open market operations and other measures that are likely to keep the size of the Federal Reserve's balance sheet at a high level.” The Federal Reserve began purchasing mortgage-backed securities this month in order “to provide support to the mortgage and housing markets, and it stands ready to expand the quantity of such purchases and the duration of the purchase program as conditions warrant.” The Federal Reserve also suggested that it “is prepared to purchase longer-term Treasury securities if evolving circumstances indicate that such transactions would be particularly effective in improving conditions in private credit markets.” The Fed also will be implementing the Term Asset-Backed Securities Loan Facility announced in November to “facilitate the extension of credit to households and small businesses.”