As fresh evidence of the economic toll from the coronavirus pandemic floods in, the Federal Reserve unleashed another round of emergency measures, including a pledge to provide support to risky corners of financial markets that have been some of the hardest hit.
The Fed said Thursday it will invest up to $2.3 trillion in loans to aid small and mid-sized businesses and state and local governments as well as fund the purchases of some types of high-yield bonds, collateralized loan obligations and commercial mortgage-backed securities.
The money comes on top of the massive stimulus that the Fed had already announced and it thrusts the institution into the sort of speculative lending activities it had shunned in the past -- underscoring the risks that Chairman Jerome Powell is willing to take to shore up the economy.
'Forcefully, Pro-Actively'
"We will continue to use these powers forcefully, pro-actively, and aggressively until we are confident that we are solidly on the road to recovery,' he said in a speech 90 minutes after the details of the measures were announced.
Monty Bannerman
Managing Director
Cell: 305-984-1177
Tel: 646-402-5076
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