The author describes the Federal Reserve’s reactions to crises, or potential crises, in financial markets. The crises considered are periods of sudden revision in expectations or physical disruption that threaten the stability of the economic system through asset price volatility. The Federal Reserve has responded to financial crises in three main ways: (i) The Fed has provided immediate liquidity through open market operations, discount window lending, and regulatory forbearance; (ii) the Fed has lowered the federal funds target over the medium term; (iii) the Fed has participated in foreign exchange intervention with the U.S. Treasury.