Jerome Powell testifies before the Senate Banking, Housing and Urban Affairs Committee on his nomination to become chairman of the U.S. Federal Reserve in Washington, U.S., November 28, 2017.The Federal Reserve's corporate-credit relief will move from exchange-traded fund purchases to taking in individual bonds, chairman Jerome Powell said Wednesday.
The statement, made before the House Financial Services Committee, follows the central bank announcing on Monday its move into bond-buying with its Secondary Market Corporate Credit Facility. The relief program has been taking in ETFs since May 12 and kicked off its individual bond purchases on Tuesday.
The facility will buy up to $250 billion in corporate bonds and ETFs, while the Fed's Primary Market Corporate Credit Facility will directly take in up to $500 billion in debt offerings once it becomes operational. The central bank also announced Monday it would "create a corporate bond portfolio that is based on a broad, diversified market index of US corporate bonds," assuaging some concerns it would extend broad market relief unevenly.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Reuters - 🏆 2. / 97 Read more »
Source: BusinessInsider - 🏆 729. / 51 Read more »