Economic Slowdown: Issues and Policies
"Recent policies have sought to contain damages spilling over from housing and
financial markets to the broader economy. These policies include monetary policy,
which is the responsibility of the Federal Reserve, and fiscal policy. Legislators and the President adopted an economic stimulus package (P.L. 110-185) on February
13. Another stimulus package is under consideration. Over the past few months, the
government has also intervened in specific financial markets, including acquisition
of troubled firms. Administration officials. with bipartisan support of Congressional
leaders, proposed a massive intervention in financial markets. This intervention
goes beyond normal monetary policy and involves Congressional consideration. The
plan, H.R. 3997, proposes authority to purchase $700 billion in assets..."