• Latest
  • Trending
  • All
Pedestrians walk past closed stores on Fordham Road in the Bronx, New York

Federal Reserve unveils details of $2.3 trillion in programs to help support the economy

April 10, 2020 06:02
Investors cautiously digest economic data

Investors cautiously digest economic data

September 27, 2023 08:00
Dollar lacks upside momentum due to lower Treasury yields

Dollar looks unstoppable

September 26, 2023 07:00
Investors stay depressed after heavy losses

Investors stay depressed after heavy losses

September 25, 2023 07:00
Equity markets mostly depressed

Equity markets mostly depressed

September 22, 2023 07:00
Dollar lacks upside momentum due to lower Treasury yields

Dollar receives fresh impetus from Fed

September 21, 2023 07:01
Dollar lacks upside momentum due to lower Treasury yields

Greenback paralyzed in anticipation of Fed decision

September 20, 2023 07:00
Stock markets directionless as Fed meeting looms

Stock markets directionless as Fed meeting looms

September 19, 2023 07:03
Dollar lacks upside momentum due to lower Treasury yields

Dollar under some pressure after the weekend

September 18, 2023 07:00
Economic data and ECB boost stock market rally

Economic data and ECB boost stock market rally

September 15, 2023 07:57
Dollar lacks upside momentum due to lower Treasury yields

USD hesitates below the 105.00 barrier

September 14, 2023 07:00
Dollar lacks upside momentum due to lower Treasury yields

USD steady and resilient in anticipation of US CPI

September 13, 2023 07:15
Stock markets struggle for direction ahead of major events

Stock markets struggle for direction ahead of major events

September 12, 2023 07:19
  • Terms & Сonditions
  • Contact
Thursday, September 28, 2023
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Investors cautiously digest economic data

    Investors cautiously digest economic data

    Investors stay depressed after heavy losses

    Investors stay depressed after heavy losses

    Equity markets mostly depressed

    Equity markets mostly depressed

    Stock markets directionless as Fed meeting looms

    Stock markets directionless as Fed meeting looms

    Economic data and ECB boost stock market rally

    Economic data and ECB boost stock market rally

    Stock markets struggle for direction ahead of major events

    Stock markets struggle for direction ahead of major events

    Risk sentiment improves somewhat after a streak of losses

    Risk sentiment improves somewhat after a streak of losses

    Dollar buoyed by risk aversion

    Dollar buoyed by risk aversion

    Equity markets indecisive ahead of the weekend

    Equity markets indecisive ahead of the weekend

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Investors cautiously digest economic data

    Investors cautiously digest economic data

    Investors stay depressed after heavy losses

    Investors stay depressed after heavy losses

    Equity markets mostly depressed

    Equity markets mostly depressed

    Stock markets directionless as Fed meeting looms

    Stock markets directionless as Fed meeting looms

    Economic data and ECB boost stock market rally

    Economic data and ECB boost stock market rally

    Stock markets struggle for direction ahead of major events

    Stock markets struggle for direction ahead of major events

    Risk sentiment improves somewhat after a streak of losses

    Risk sentiment improves somewhat after a streak of losses

    Dollar buoyed by risk aversion

    Dollar buoyed by risk aversion

    Equity markets indecisive ahead of the weekend

    Equity markets indecisive ahead of the weekend

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
No Result
View All Result

Home » Federal Reserve unveils details of $2.3 trillion in programs to help support the economy

Federal Reserve unveils details of $2.3 trillion in programs to help support the economy

The Fed plan would inject another $2.3 trillion into businesses and revenue-pinched governments.

by FWNews
April 10, 2020 06:02
in News
0
Pedestrians walk past closed stores on Fordham Road in the Bronx, New York

The Federal Reserve on Thursday announced a bevy of new moves aimed at getting another $2.3 trillion of financing into businesses and revenue-pinched governments.

Stock futures jumped after the announcement, which came moments after the government reported that 6.6 million new jobless claims were filed last week.

Among the Fed’s measures were details regarding its Main Street business lending program and several other initiatives it is undertaking to backstop the reeling U.S. economy. The central bank also provided more detail on its market interventions, including plans to buy corporate bonds both at an investment-grade level as well as high-yield, or junk, bonds.

Under provisions outlined for the first time, the loans would be geared toward businesses with up to 10,000 employees and less than $2.5 billion in revenues for 2019. Principal and interest payments will be deferred for a year.

The Fed said the programs would total up to $2.3 trillion and include the Payroll Protection Program and other measures aimed at getting money to small businesses and bolstering municipal finances with a $500 billion lending program.

“Our country’s highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus,” Fed Chairman Jerome  Powell said in a statement. “The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.”

The measures enhance an already-aggressive move by the Fed to keep markets functioning and support the economy, which has been handcuffed due to public health measures aimed at halting the coronavirus spread.

Money for business and government

The Main Street loans would be a minimum of $1 million and a maximum of either $25 million or an amount that “when added to the Eligible Borrower’s existing outstanding and committed but undrawn debt, does not exceed four times the Eligible Borrower’s 2019 earnings before interest, taxes, depreciation, and amortization,” whatever is less, the Fed said.

The Fed will purchase up to $600 billion in loans.

Terms would see an interest rate equal to the Fed’s Secure Overnight Financing Rate, currently 0.01%, plus 250-400 basis points with a four-year maturity. 

A special-purpose vehicle that Fed created jointly with the Treasury Department will purchase 95% of the loan while the financing institution would hold the other 5%.

In addition to the Main Street program aimed at midsize companies, the Fed also announced a move to “bolster the effectiveness” of the Payroll Protection Program by providing term finance to institutions lending through the PPP.

While the Fed already has entered the municipal bond market, the latest steps establish a new Municipal Liquidity Facility that will offer up to $500 billion in lending to states and municipalities. The Treasury will provide a $35 billion backstop to the program to guard against potential losses.

The central bank also said it will expand three existing credit facilities aimed at increasing credit to households and businesses. The new effort will target $850 billion through the three facilities, a move backed by $85 billion in protection from the Treasury.

The Fed also expanded the type of collateral it will accept through one of the programs, known as the Term Asset-backed Loan Facility.

Source: CNBC
Tags: Federal Reserve
Share4Tweet2
ADVERTISEMENT
FWNews

FWNews

Track the pulse of the market

Related Posts

Investors cautiously digest economic data
Fundamental analysis

Investors cautiously digest economic data

September 27, 2023 08:00
11
Investors stay depressed after heavy losses
Fundamental analysis

Investors stay depressed after heavy losses

September 25, 2023 07:00
12
Stock markets struggle for direction ahead of major events
Fundamental analysis

Stock markets struggle for direction ahead of major events

September 12, 2023 07:19
22
Stocks advance amid signs of a cooling US economy
Fundamental analysis

Stocks advance amid signs of a cooling US economy

August 30, 2023 05:14
18
Stocks enjoy Nvidia-inspired rally
Fundamental analysis

Stocks enjoy Nvidia-inspired rally

August 24, 2023 06:47
18
Investors spooked by strong US data
Fundamental analysis

Investors spooked by strong US data

December 23, 2022 11:55
36

Leave Your Opinion Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Risk demand started to wane gradually on Friday

Stocks turn sour, dollar shows recovery signs

March 27, 2020 06:38
26
Pound corrects higher due to dollar weakness

King dollar holds post-CPI gains

November 11, 2021 04:21
15
Dollar lacks upside momentum due to lower Treasury yields

Markets struggle for direction ahead of jobs report

June 3, 2022 06:02
18

Ads

Shneider Electric

Most Popular

A slow start to the week in FX markets
Technical analysis

Dollar regains ground to start the week

January 25, 2021 07:25
124
A slow start to the week in FX markets
Technical analysis

Greenback advances modestly amid strong data

May 28, 2021 07:38
110
Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war
News

Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war

July 28, 2020 08:29
95
FWNews

Copyright © 2022 FWNews

  • Terms & Сonditions
  • Contact
No Result
View All Result
  • FUNDAMENTALS
  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage

Copyright © 2022 FWNews