Fed Commits Additional $800 Billion to Unfreeze Credit

November 25 - The Federal Reserve pledged an additional $800 billion today across several different initiatives to help unfreeze credit markets.  $100 billion of funds will go to purchasing debt directly from Fannie and Freddie Mae, while another $500 billion will be used to purchase mortgage-related securities backed by Fannie, Freddie or Ginnie Mae.  The final $200 billion will be lent through the newly-formed Term Asset-Backed Securities Loan Facility (TALF) to support loans for consumers and small businesses.  For a chart of other recent actions by government in response to the financial crisis, see pages six and seven of CRFB's "Guide to Stimulus Proposals"