FED Pass
An action taken by the Federal Reserve that looks to increase the availability of credit by moving additional reserves into the banking system. The supply of loans is increased as more funds are injected into major banks, typically allowing lenders to originate more mortgages at lower interest rates. Investopedia Says:
The FED Pass is an aspect of monetary policy that aims to affect the amount of money in circulation and increase lending. This action could be used as a method to combat economic difficulties, such as a credit crunch. Related Terms:
Credit Crunch
Federal Reserve Bank
Federal Reserve Board - FRB
Federal Reserve System
Interest Rate
Monetary Policy
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