US Fed announces $2.3trn financing to support economy amid Covid-19 pandemic

Daily News Egypt
2 Min Read

The US Federal Reserve on Thursday announced more financing facilities of $2.3trn to support the national economy during the Coronavirus pandemic, including assistance programmes for small and medium-sized enterprises (SMEs) and federal governments.

“Our country’s highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus,” said Fed Board Chair Jerome H. Powell. “The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible,” Powell added.

Among the Fed’s measures were details regarding its Main Street Lending Program and several other initiatives it is undertaking to support SMEs that were in good financial standing before the crisis. The programme offers 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5bn.

Moreover, the Municipal Liquidity Facility will help state and local governments better manage cash flow pressures in order to continue to serve households and businesses in their communities. The facility will purchase up to $500bn of short-term notes directly from US states and ensure credit flows to SMEs with the purchase of up to $600bn.

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