The Federal Reserve took corrective measures to expand its balance sheet through various programs to provide liquidity to financial markets and institutions during the subprime crisis because the economy was weak and inflation was low. These emergency programs would need to be unwound when the economy recovers to prevent inflation, by raising interest rates and reducing the money supply. The document then lists the specific programs launched by the Fed to provide liquidity to banks, depository institutions, financial institutions, investors, borrowers, and to assist troubled institutions like Bear Stearns and AIG.