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.


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.

  1. Federal Reserve Credit

    Refers to the process of the Federal Reserve lending funds on ...
  2. Adjustment Credit

    Adjustment credit is a short-term loan, which a Federal Reserve ...
  3. Portfolio Lender

    A portfolio lender originates mortgage loans and also holds a ...
  4. Reserve Requirements

    Reserve requirements refer to the amount of cash that banks must ...
  5. Free Reserves

    Free reserves are the reserves a bank holds in excess of required ...
  6. Reserve Ratio

    The portion (expressed as a percent) of depositors' balances ...
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