US Fed Announces Unlimited Economic Support

The program announced by the Fed implies unlimited purchase of government bonds and mortgage derivatives. Prior to that, $ 500 billion was in place for bonds, and $ 200 billion for mortgage bonds. FOMC also announced a redemption of corporate bonds and various measures of credit support to companies in the amount of $ 300 billion. $ 30 billion from the stabilization fund of the US Treasury will provide loans to citizens and businesses. .

Among other measures that the regulator will take is the creation of new mechanisms to support lending to large employers. As part of the Primary Market Corporate Credit Line (PMCCF), the Fed will lend directly to the business in order to maintain its “operational resilience in times of pandemic disruption.” To ensure liquidity of the corporate bond market, the regulator will launch the Secondary Market Corporate Credit Line (SMCCF).

US Federal Reserve urgently cuts rate due to coronavirus

The program announced by the Fed implies unlimited purchase of government bonds and mortgage derivatives. Prior to that, $ 500 billion was in place for bonds, and $ 200 billion for mortgage bonds. FOMC also announced a redemption of corporate bonds and various measures of credit support to companies in the amount of $ 300 billion. $ 30 billion from the stabilization fund of the US Treasury will provide loans to citizens and businesses. .

Among other measures that the regulator will take is the creation of new mechanisms to support lending to large employers. As part of the Primary Market Corporate Credit Line (PMCCF), the Fed will lend directly to the business in order to maintain its “operational resilience in times of pandemic disruption.” To ensure liquidity of the corporate bond market, the regulator will launch the Secondary Market Corporate Credit Line (SMCCF).

USA CORONAVIRUS

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