Posted on 03/23/2020 5:34:49 AM PDT by Oldeconomybuyer
The U.S. Federal Reserve, citing tremendous hardship caused by the coronavirus pandemic, on Monday said it would begin backstopping an unprecedented range of credit for households, small businesses and major employers.
The Fed said the effort was taken because it has become clear that our economy will face severe disruptions.
(Excerpt) Read more at reuters.com ...
The Federal Reserve on Monday took a slew of new actions designed to support the financial markets, including purchasing an unlimited amount of Treasurys and mortgage-backed securities.
The latest move by the U.S. central bank includes buying assets in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”
The Fed also said it will purchase agency commercial mortgage-backed securities as part of an expansion of its asset purchases, known as “quantitative easing.” The move represents an essentially open-ended commitment to the QE program.
This marks one of its most aggressive steps yet to insulate markets from the coronavirus pandemic.
The coronavirus pandemic is causing tremendous hardship across the United States and around the world. Our nations first priority is to care for those afflicted and to limit the further spread of the virus, the Fed said in a statement.
While great uncertainty remains, it has become clear that our economy will face severe disruptions. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate,” it added.
The Fed also said it would launch three new lending facilities, including the Term Asset-Backed Securities Lending Facility, a program first created during the 2008 financial crisis. There will be a $300 billion program to support the flow of credit to employers, consumers and businesses.
it unveiled plans for two other lending facilities to support corporate credit markets: The Primary Market Corporate Credit Facility for new bond and loan issuance and the Secondary Market Corporate Credit Facility to provide liquidity for outstanding corporate bonds.
Large numbers of desperate, unemployed, suddenly impoverished people would be more dangerous than coronavirus infection.
Is it time to start talking about a Jubilee year? Yikes.
How about repealing that 1863 national bank law that allows national banks to ignore state usury laws?
Good to see the Fed taking the wind out of the MSM and Democrats’ sails. National sabotage is the only successful campaign they have left.
Quit printing money! No more easing! We are tired of being robbed for wall street.
Now your talking. Let the banks pay for once and write down loans.
You're right!
We can trust Trump, not only to lead the nation through this crisis and restore the economy, but also to prevail over the enemy within, viz. the Corrupt Establishment.
Time for the FairTax!!
Not helping at the open. Well, maybe keeping the losses less than otherwise.
That will never happen. The Fed is not bailing out the banks. It is desperately trying to protect the value of the U.S. dollar.
I know it will never happen. They are not trying to protect the value of the dollar, but to stop deflation, since banks hold paper.
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