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However, the Fed is not expected to bring liquidity down to where it was before the crisis because it will also raise interest rates. The Fed will borrow the money through reverse repos on the mortgage-backed securities it acquired at the beginning of the financial crisis.
The Fed is reportedly considering a pilot test drive but is afraid that news of such an action will stoke fears that liquidity will be reduced significantly. Last Wednesday, the Fed said it would keep interest rates near zero, a signal that if the Fed is considering liquidity measures, no actions are likely to be taken in the near term.