Actions go beyond 2008 financial crisis.
A broad slate of programs to make sure credit flows to businesses and consumers crippled by coronavirus safety measures has been announced by the Federal Reserve.
For the first time, they are “dipping their toes” into the corporate bond market by contributing to a lending facility that will be used to buy corporate bonds issued by highly-rated companies. They also expanded their buying to include government-backed commercial real estate debt.
The measures they are taking go beyond those employed during the 2008 financial crisis.
In coming days, Fed Chairman Jerome Powell said it will launch a program directly aimed at Main Street, to support loans to small businesses. “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,” the central bank said in a statement.
As the Lord Leads, Pray with Us…
- For the members of the Federal Reserve and the steps they are taking to combat the impact the coronavirus has had on the American economy.
- For a congressionally-passed stimulus package to have funds reach small businesses and individuals in a timely way to stave off as much impact of the economic stand-still as possible.
Sources: Axios, Wall Street Journal
