The Fed announces unlimited bond-buying, sets up program to stimulate companies and local governments, in order to combat coronavirus fallout | Markets Insider

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The Fed announces unlimited bond-buying, sets up program to stimulate companies and local governments, in order to combat coronavirus fallout

The Federal Reserve on Monday announced an array of new programs intended to prop up the US economy, stimulate companies and local governments, and smooth markets and the flow of credit amid the coronavirus outbreak.

"While great uncertainty remains, it has become clear that our economy will face severe disruptions.

To support businesses, consumers, and employers, the Fed will provide up to $300 billion in new financing, including $30 billion from the Department of the Treasury, using the Exchange Stabilization Fund. The Fed will also establish two facilities to support credit to large employers, and a third facility to support the flow of credit to consumers and businesses.

In addition, the Fed expects to soon announce a Main Street Business Lending Program to support lending to eligible small and medium-sized businesses, complementing efforts by the Small Business Administration.

 

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