U.S. Fed aims ‘bazooka’ at coronavirus to backstop economy

Download

U.S. Fed aims ‘bazooka’ at coronavirus to backstop economy

News
(Reuters) – 24-03-2020

The U.S. Federal Reserve on Monday mounted an extraordinary new array of programs to offset the “severe disruptions” to the economy caused by the coronarvirus outbreak, backstopping an unprecedented range of credit for households, small businesses and major employers.

The new programs mean the Fed will lend against student loans, credit card loans, and U.S. government backed-loans to small businesses, and buy bonds of larger employers and make loans to them in what amounts to four years of bridge financing. A new “Main Street Business Lending Program” that will extend credit to small- and-medium sized businesses will also be announced “soon,” the Fed said.