but the deadline has been extended to February 1 2010

Most emergency programmes implemented by the Federal Reserve to support liquidity in the markets are less invited previously, what is an encouraging sign for the standardization of the financial sector.

According to the latest report of the Bank Central, dated September 30, the direct loans to banks is at its lowest level since the bankruptcy of Lehman Brothers and represented, in late September, only 207 billion dollars after a peak at 560 billion. The "primary dealers" do anymore appeal to the loan facility the day which had been put in place and less loans of Treasury bills for 28 days, including the amount of auctions will be reduced from 50 to 25 billion dollars per month. Similarly, programs dedicated to mutual funds and commercial paper are at their lowest levels since their creation, because enterprises are more reluctant to go directly to the investors.

Lighten the balance sheet

A year ago, to help the "mutual funds", large purchasers of commercial paper, to repay investors who sought to recover their development and to restore liquidity in the market, the Federal Reserve decided to financially assist institutions which would purchaser of paper-backed assets of very good quality. But since May 2009, no loan was required, which helped lighten the balance sheet of the Central Bank of 152 billion over the past twelve months.

Also, the Federal Reserve intervened to help issuers of commercial paper by creating a special vehicle that buys directly from the commercial paper backed or not assets, for a period of three months. The vehicle was originally to stop investing in April 30, 2009, but the deadline has been extended to February 1 2010, because activity is still supported: the amount of daily loans in September amounted to $ 39 billion. It is also the case of another program, designed to support the issuance of securities backed by loans for consumption or for small business: $ 43 billion were borrowed in September, $ 8 billion better than the previous month.

Support the stimulus

Side real estate, the Central Bank continues to help the mortgage agencies and registered 131 billion in debt to its balance sheet and ABS $ 692 billion in real estate. At its last meeting mid-October, the Fed's monetary policy Committee has discussed for whether to increase the retail mortgage-backed securities purchase program in real estate - it is expected to reach 1,250 billion - to better support the recovery of the economy. Governors finally preferred to extend the duration of the program until March 2010 before gradually decrease.

Less use of programs that have been extremely inventive relaunching the debate on the speed and the way in which the Central Bank will reduce its balance sheet which has exceeded 2,100 billion. The pattern of the Fed, Ben Bernanke assured having the tools at its disposal to engage an exit strategy, but he prefers, before disengaging the Fed wait a sufficient improvement in the economy. The timing can become a point of dispute with the White House for the time being to maintain all aid in place. The treatment of weight loss of the balance sheet of the Central Bank could take four to five years according to some analysts.