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Banks also needed support to keep credit flowing. When financial markets are clogged, firms tend to draw on bank lines of credit, which can lead
Banks also needed support to keep credit flowing. When financial markets are clogged, firms tend to draw on bank lines of credit, which can lead banks to pull back on lending or selling Treasury and other securities. The Fed supplied unlimited liquidity to financial institutions so they could meet credit drawdowns and make new loans to businesses and households feeling financial strains
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