Wednesday, 23 Dec 2020 At issue is Section 13(3) of the Federal Reserve Act, which grants the central bank broad powers to make loans and otherwise keep money flowing in “unusual and exigent circumstances.” Added to the central bank’s arsenal amid the Great Depression, the authority has proved invaluable in recent decades. THE pandemic relief deal that Congress struck this week is long overdue. Unfortunately, the package includes a provision that threatens to make this and future crises worse – by limiting the emergency powers of the Federal Reserve. At issue is Section 13(3) of the Federal Reserve Act, which grants the central bank broad powers to make loans and otherwise keep money flowing in “unusual and exigent circumstances.” Added to the central bank’s arsenal amid the Great Depression, the authority has proved invaluable in recent decades.