Fed takes major action to support markets as coronavirus weighs on economy

  
Via:  sparty-on  •  6 days ago  •  13 comments

By:   Megan Henney

Fed takes major action to support markets as coronavirus weighs on economy
“While great uncertainty remains, it has become clear that our economy will face severe disruptions. 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,"

S E E D E D   C O N T E N T


The Federal Reserve on Monday took a slew of new actions designed to support the financial markets, including purchasing an unlimited amount of Treasurys and mortgage-backed securities.

The latest move by the U.S. central bank includes buying assets “in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy."

The Fed also said it will purchase agency commercial mortgage-backed securities as part of an expansion of its asset purchases, known as "quantitative easing." The move represents an essentially open-ended commitment to the QE program.

This marks one of its most aggressive steps yet to insulate markets from the coronavirus pandemic.

“The coronavirus pandemic is causing tremendous hardship across the United States and around the world. Our nation’s first priority is to care for those afflicted and to limit the further spread of the virus,” the Fed said in a statement.

“While great uncertainty remains, it has become clear that our economy will face severe disruptions. 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," it added.

The Fed also said it would launch three new lending facilities, including the Term Asset-Backed Securities Lending Facility, a program first created during the 2008 financial crisis. There will be a $300 billion program to support the flow of credit to employers, consumers and businesses.

it unveiled plans for two other lending facilities to support corporate credit markets: The Primary Market Corporate Credit Facility for new bond and loan issuance and the Secondary Market Corporate Credit Facility to provide liquidity for outstanding corporate bonds.

Fed policymakers also said they expect to announce the "establishment of a 'Main Street business Lending Program' to support lending to eligible small businesses" in the near future.

The Fed is doing "whatever it takes," Gregory Daco, chief economist at Oxford Economics, tweeted.

U.S. equity futures pared their losses and turned higher on the news.


Tags

jrDiscussion - desc
smarty_function_ntUser_is_admin: user_id parameter required
[]
 
Sparty On
1  seeder  Sparty On    6 days ago

Thanks for nothing congress .....

 
 
 
Vic Eldred
1.1  Vic Eldred  replied to  Sparty On @1    6 days ago

Well said!

 
 
 
XDm9mm
1.2  XDm9mm  replied to  Sparty On @1    6 days ago
Thanks for nothing congress .....

It takes two to tango and one of the "parties" in congress doesn't want to dance.  They simply take their dancing shoes and shove them up the peoples ass and then they'll blame the Republicans for doing nothing.

 
 
 
Sparty On
1.2.1  seeder  Sparty On  replied to  XDm9mm @1.2    6 days ago

They are all at fault but as with anything else there is a catalyst that drives the reaction.

That catalyst in this case is the warlock of the east (Schumer) and the wicked witch of the west (Pelosi) .....  leaders of butt-hurt nation.

 
 
 
Ronin2
2  Ronin2    6 days ago

The FED doesn't have to rely on Congress or the White House to act. In this case that is a good thing.

 
 
 
Sparty On
2.1  seeder  Sparty On  replied to  Ronin2 @2    6 days ago

Yep, that was the point of my first comment.

 
 
 
Dean Moriarty
3  Dean Moriarty    6 days ago

I think it sucks. I just logged on to Treasury Direct to buy some more T bills after some matured and the yields are nauseating. 

https://www.treasurydirect.gov/instit/annceresult/annceresult.htm

 
 
 
XDm9mm
3.1  XDm9mm  replied to  Dean Moriarty @3    6 days ago
I just logged on to Treasury Direct to buy some more T bills after some matured and the yields are nauseating.

Buy them for the grandkids or great grandkids.   It's better than saddling them with more debt they'll need to pay off.

 
 
 
Ronin2
3.1.1  Ronin2  replied to  XDm9mm @3.1    6 days ago

I don't have any offspring- so I agree with Dean- those yields are sickening.

 
 
 
XDm9mm
3.1.2  XDm9mm  replied to  Ronin2 @3.1.1    6 days ago
I don't have any offspring- so I agree with Dean- those yields are sickening.

I didn't disagree, hell, they are.  But when you consider the alternatives, they're the silver lining to the storm clouds right now.

Personally, I believe it's a short term panic situation.   Hell, I don't think it'll be nearly as bad a the Swine Flu (H1N1) of 2009/1010.

But, I'll be the first to admit that nature will be the ultimate winner.  No matter how strong and smart we think we are, those little fucking bugs are going to be the ultimate winner and eradicate our species.

 
 
 
Sparty On
3.1.3  seeder  Sparty On  replied to  XDm9mm @3.1.2    6 days ago
Personally, I believe it's a short term panic situation.   Hell, I don't think it'll be nearly as bad a the Swine Flu (H1N1) of 2009/1010.

Agreed

 
 
 
Sparty On
3.2  seeder  Sparty On  replied to  Dean Moriarty @3    6 days ago

Yep its painful but i believe the other option here if nothing is done is nothing short of anarchy.      Its one thing to hoard TP and hand sanitizer .... if food gets scarce watch out.

Big cities like New York and Chicago would eat themselves alive.

Congress, like usual, is offering a big fat nothing to help .....

 
 
 
XDm9mm
3.2.1  XDm9mm  replied to  Sparty On @3.2    6 days ago
Big cities like New York and Chicago would eat themselves alive.

Not necessarily a bad idea.  They can gorge themselves on concrete and asphalt, and the country bumpkins can dine on surf and turf.

 
 
Loading...
Loading...

Who is online

Freewill
Donald J. Trump Fan #1
KDMichigan
GregTx
igknorantzrulz


57 visitors