The US Federal Reserve announced on Thursday that it has taken additional actions to provide up to $2.3 trillion in loans to support the economy.
Key takeaways from the statement
"Will assist households and employers of all sizes as well as state and local governments."
"Will purchase up to $600 billion in loans through Main Street Lending Program aimed at small and midsize businesses using $75 billion in capital from the US Treasury."
"Expanding primary and secondary corporate credit facilities and term asset-backed loan facilities to $850 billion to increase flow of credit to households and businesses."
"Will help state and local governments manage cash flow through a new municipal liquidity facility to lend up to $500 billion with $35 billion capital contribution from the Treasury."
"Main Street Program will make 4-year loans to companies with under 10,000 workers, $2.5 billion in revenue and in good financial standing before the crisis."
"Principal and interest on Main Street Program will be deferred for 1 year."
"Main Street Lending will be made through banks with the Fed buying up to 95% of the loan."
"Firms obtaining loans must make a 'reasonable effort' at retaining workers and payroll."
"Fed says other restrictions from cares act on dividends, compensation apply to Main Street Program."
"Muni facility will buy up to $500 billion of short term notes directly from US states and DC., US counties with at least 2 million residents and US cities with at least 1 million residents."
"Will keep monitoring muni market to see if more help is needed."
The greenback weakened slightly against its peers on this announcement and the US Dollar Index was last seen erasing 0.17% on the day at 99.99.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.