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The Federal Reserve announced a number of steps on Monday meant to shore up the US economy during the coronavirus crisis. The central bank said its Federal Open Market Committee will buy Treasury securities and mortgage-backed securities in “the amounts needed to support smooth market functioning” as part of a wide-ranging plan to blunt the …
The Federal Reserve announced a number of steps on Monday meant to shore up the US economy during the coronavirus crisis.
The central bank said its Federal Open Market Committee will buy Treasury securities and mortgage-backed securities in “the amounts needed to support smooth market functioning” as part of a wide-ranging plan to blunt the economic impact of the pandemic.
“While great uncertainty remains, it has become clear that our economy will face severe disruptions,” the Fed said in a statement. “Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”
The move came about a week after the Fed announced plans to buy at least $700 billion worth of Treasury and mortgage-backed securities in a restart of its so-called quantitative easing program. The bank has also slashed its benchmark interest rate to near zero and taken other aggressive steps to stabilize markets during the virus crisis.
The Fed also announced three new programs Monday to help ensure consumers and businesses have access to credit. It will also expand the so-called Commercial Paper Funding Facility it announced last week, in which the bank will buy debt from eligible companies in a tight credit market.
Lawmakers on Monday were expected to take another swing at passing a stimulus bill that failed over the weekend.
