US Fed Announced New Measures of Economic Support
OREANDA-NEWS. The US Federal Reserve System announced that it will buy government bonds and bonds issued by mortgage agencies in unlimited quantities, regarding the needs of the economy.
The Federal Open Market Committee’s statement says that the coronavirus pandemic poses tremendous challenges in the United States and around the world. The regulator’s leadership recognized that even in the conditions of continuing uncertainty, it is already clear that the US economy will face serious disruptions.
The program announced by the Fed implies unlimited purchase of government bonds and mortgage derivatives. Before that, the limits were established: 500 billion dollars for bonds, and 200 billion for mortgage bonds. The Federal Open Market Committee also announced various measures of credit support to companies in the amount of 300 billion dollars. 30 billion from the Exchange Stabilization Fund of the US Department of Treasury will provide loans to citizens and businesses.