Fed is ending the program it started during the crisis

The Fed has decided not to extend the funding program it put in place during the banking crisis. Michael Barr, the Fed’s vice chairman for supervision, signaled that the central bank is unlikely to extend the emergency lending program it launched last year during the regional banking crisis. Barr said on Tuesday that the Fed’s Bank Term Funding Program is designed to relieve stress in the financial system. The temporary program expires on March 11. The program allows banks to borrow for up to a year. Banks have used the support to provide record amounts of funding in recent weeks as expectations that the Fed will cut interest rates starting in March make it a more attractive choice. Barr has often said that the program was designed for “emergency” situations and added that he expects the borrowing to continue until March 11.