Federal Reserve Chairman Jerome Powell said the Fed’s role was to provide as much relief and stability as we can during this period of constrained economic activity.. The Federal Reserve is taking additional steps to provide up to US$2.3 trillion in loans to support American households and businesses, as well as local governments, as they deal with the coronavirus. The plan is to offer 4 -year loans to companies, with principal and interest payments deferred for one year. The loans will be originated by banks, who will retain a 5 percent share and sell the rest to the Fed’s facility, Marketwatch reports. Another facility set up Thursday will purchase up to US$500 billion of short-term notes directly from states, counties and cities.

Source: The Standard April 09, 2020 13:11 UTC