Press "Enter" to skip to content

The Fed Is Stretching Its Emergency Programs Through 2020

  • The Federal Reserve said it will extend its programs for emergency lending by the end of 2020 as the coronavirus continues to spread across the United States.
  • Many of the nine Fed programs were initially expected to expire at or before the end of September.
  • The programs are intended to keep credit flowing through the economy by purchasing corporate bonds, backing the asset-backed securities market, and providing loans to mid-size businesses, among other measures.
  • Visit The Financial Today’s homepage for more stories.

The Federal Reserve said it will extend its programs for emergency lending by the end of 2020 as the coronavirus continues to spread across the United States.

Many of the nine Fed programs were initially expected to expire at or before the end of September. The programs are intended to keep credit flowing through the economy by purchasing corporate bonds, backing the asset-backed securities market, and providing loans to mid-size businesses, among other measures.

“The Board’s lending facilities have provided a critical backstop, stabilizing and substantially improving market functioning and enhancing the flow of credit to households, businesses, and state and local governments,” the Fed said in its statement.

The extension will “provide certainty that the facilities will continue to be available to help the economy recover from the COVID-19 pandemic,” it said.

Some of the Fed’s programs are funded by the Treasury Department funds to protect against credit losses, including money provided by Congress in the first relief package on coronavirus. Initially, seven of the programs were scheduled to expire at the end of September and have now been extended, with two of them now having later expiry dates.

Some of the newly-extended programs have only recently been up and running, including the “Main Street” program that lends to midsize companies. One, which assists the short-term business financing market, or commercial paper, extends through March 2021.

[yop_poll id=”-3″]

[The New York Times]

Be First to Comment

Leave a Reply

Hi, I'm Alfred Cardenas!We’re running an equity crowdfunding campaign.

This is your chance to invest and own a part of The Financial Today!