To be sure, the Federal Reserve undertook other important initiatives to combat the financial crisis. It launched a number of facilities to relieve financial strains at specific types of institutions and in specific markets. In addition, in an attempt to provide even more stimulus, it used public communications about its policy intentions to lower market expectations of the federal funds rate in the future. All of these strategies were designed to ease financial conditions and to support a sustained economic recovery. Over time, though, the credit extended by the liquidity facilities has declined and the dominant component of the Federal Reserve’s balance sheet has become the assets accumulated under the LSAP
programs.