Fed Expands Operations to Keep US Economy Afloat
On Thursday, the Federal Reserve announced a new wave of programs to help keep the US economy afloat, according to The Wall Street Journal.
The Fed will provide $2.3 trillion in loans. This will expand the Fed's operations to reach small and midsize businesses as well as US cities and states. Furthermore, corporate lending programs will now include some classes of riskier debt.
“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,” said Fed Chairman Jerome Powell.
Specifically, the Fed is offering four-year loans where payments can be deferred for up to one year if a business has fewer than 10,000 employees or revenues of less than $2.5 billion.
On Thursday, the Federal Reserve announced a new wave of programs to help keep the US economy afloat.