News release: “Since the Committee convened in late April, the contraction in economic activity has persisted but at a slower pace, while financial conditions have continued to improve. Aggressive fiscal and monetary policy efforts have played a critical role in slowing the speed of economic contraction. Such efforts have closed off the threat of a failure of a systemically significant financial institution, which in turn is curbing financial market volatility and contributing to the unlocking of credit markets. The Federal Reserve’s holding of the funds rate near zero, joined with its asset purchase and liquidity programs, has normalized risk spreads in various markets. At the same time, stepped-up government spending and tax cuts and credits are helping to stabilize aggregate demand.”