Fed announces new measures for businesses and households

US, WASHINGTON (ORDO NEWS) — The US Federal Reserve announced on Monday that it will for the first time directly support the credit markets for individuals, SMEs and large businesses in an attempt to limit the “serious economic disruption” caused by the pandemic. coronavirus.

The new measures decided by the central bank of the United States include new programs of support to the markets of the student loans, of the consumer credit and the loans guaranteed by the small companies, as well as new programs of purchases of ‘bonds issued by large companies and loans dedicated to them.

Existing programs to purchase treasury bills and mortgage securitization products will be increased as necessary to “promote smooth market functioning and efficient transmission of monetary policy to financing conditions and the economy” says the Fed in a statement.

She added that she made these decisions because “it has become clear that our economy will face serious disruption”.

These announcements have helped reassure the financial markets at least temporarily: futures on the major Wall Street indices, which previously foreshadowed a clear opening, have trended upwards and in Europe, the stock markets have reduced their losses.

The dollar, on the other hand, has been trending downwards, whereas it previously enjoyed its safe haven status.

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The article is written and prepared by our foreign editors from different countries around the world – material edited and published by Ordo News staff in our US newsroom press.

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