Recent actions by the Federal Reserve should help lower the cost of credit to consumers and businesses, according to Boston Fed President Eric Rosengren speaking before the House Financial Services Committee on Monday.

While credit availability continues to be a significant source of concern for the Federal Reserve, the Fed has acted proactively and creatively to address these concerns, said the central banker.

Rosengren's presentation to the House included some background on the financial crisis and some additional explanation of the central bank's Term Asset Backed Securities Lending Facility. The TALF is an initiative geared at providing financing for entities seeking to purchase debt related to mortgages and automakers, along with other consumer debt such as credit cards and student loans.

Rosengren also reminded attendees that in addition to agreeing to buy U.S. Treasuries at last week's FOMC meeting, the central bank also committed to spending an additional $750 billion to buy agency mortgage-backed securities.

By Erik Kevin Franco, efranco@economicnews.ca, edited by Ernest Hoffman, ehoffman@economicnews.ca