Fed announces drastic expansion of economic rescue efforts
By Sylvan Lane - 03/23/20 09:03 AM EDT
The Federal Reserve on Monday announced a drastic expansion of its efforts to bolster the U.S. economy and stabilize financial markets plunging due to the coronavirus pandemic.
The Federal Open Market Committee, which sets Fed monetary policy, announced Monday it would purchase an unlimited amount of Treasury bonds and mortgage-backed securities and open three new facilities to purchase corporate and municipal debt.
The moves are the Fed’s latest steps down a path of unprecedented intervention in the U.S. economy, intended to keep credit flowing to households and businesses amid an economic calamity caused by the coronavirus pandemic.
The widespread closures of restaurants, bars, entertainment venues, social events, gatherings and retailers meant to slow the spread of COVID-19 have already landed a devastating blow to the U.S. economy. Tens of thousands of Americans already have applied for unemployment insurance.
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https://thehill.com/policy/finance/488973-fed-announces-drastic-expansion-of-economic-rescue-efforts
