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In response to the credit market turmoil, the Fed Reserve, the Treasury, and the Federal Deposit Insurance Corporation (FDIC) have undertaken a sequence of interventions. Some of these have been fairly direct extensions of the Fed's standard discount window lending--such as the term auction facility, or even the primary dealer credit facility, which extended credit to a specific set of nonbank financial institutions. Others involve the use of Fed credit to support specific classes of assets for instance, commercial paper and now asset backed securities. (2) Still others, of course, have provided direct assistance to specific institutions, such as Bear Stearns and American International Group (AIG). Citibank and Bank of America obtained asset guarantees provided jointly by the Fed, the FDIC, and the Treasury. Each of these credit programs involves Fed Reserve lending or lending commitments. Before last October, the Fed was able to "sterilize" new lending through offsetting asset sales that soaked up the additional bank reserves, which otherwise would have increased the monetary base and pushed the Fed funds rate below its target at the time. After October, the cumulative amount lent became too large to sterilize, and further lending added to the monetary base. Luckily, and perhaps not coincidentally, the implementation of these large credit programs has coincided with a time in which additional monetary stimulus is warranted.