how does the federal reserve board respond to financial crises 
during financial crises the fed provides liquidity to banks and financial markets to prevent a collapse of the financial system it can make emergency loans and employ unconventional monetary policy measures to stabilize the economy and restore confidence the bottom linethe federal reserve board commonly known as the fed is the central banking system of the united states its primary mission is to control monetary policy to promote stable prices sustainable economic growth and full employment the federal reserve board uses various tools including adjusting interest rates and conducting open market operations to influence the money supply and influence the broader economy correction jan 31 2023 a previous version of this article incorrectly listed the federal reserve board as a non governmental agency while independent the frb is an agency of the federal government 