The Federal Reserve System has stretched itself to provide a cushion for the current economy crisis so as to minimize the extent of the downturn.
Liquidity has been the first issue. Can the Federal Reserve provide the financial markets and financial institutions with sufficient liquidity so that they can make the adjustments they need and absorb the losses they face and continue to function as smoothly as possible?
So far, markets and institutions seem to be sufficiently liquid to handle everything that has been faced so far.
But, there is a second problem that financial