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Fed Pulls Out All Stops to Shore Up Economy

GettyImages-939248364-Federal-Reserve has announced Last week, major indicies continued to slide and credit remained increasingly difficult to come by An agency mortgage-backed security unprecedented venerable max out their bank financing Primary Market Corporate Credit Facility

The Secondary Market Corporate Credit Facility is either issued reopening the Term Asset-Backed Securities Loan Facility (TALF) 2008 financial crisis previously major component
  • The establishment of the Commercial Paper Funding Facility (CPFF), the Money Market Mutual Fund Liquidity Facility (MMLF), and the Primary Dealer Credit Facility;

  • The expansion of central bank liquidity swap lines;

  • Steps to enhance the availability and ease terms for borrowing at the discount window;

  • The elimination of reserve requirements;

  • Guidance encouraging banks to be flexible with customers experiencing financial challenges related to the coronavirus and to utilize their liquidity and capital buffers in doing so;

  • Statements encouraging the use of daylight credit at the Federal Reserve.

In addition to the steps above, the Federal Reserve expects to announce soon the establishment of a Main Street Business Lending Program to support lending to eligible small-and-medium sized businesses, complementing efforts by the SBA.