The Federal Reserve Just Pledged Asset Purchases With No Limit To Support Markets
Monday, 23 March 2020 20:53 WIB | FISCAL & MONETARY |The FedFederal Reserve

The Federal Reserve said Monday it will launch a barrage of programs aimed at helping markets function more efficiently in the wake of the coronavirus crisis.

Among the initiatives is a commitment to continue its asset purchasing program œin the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.

That represents a potentially new chapter in the Fed™s œmoney printing as it commits to keep expanding its balance sheet as necessary, rather than a commitment to a set amount.

The Fed also will be moving for the first time into corporate bonds, purchasing the investment-grade securities in primary and secondary markets and through exchange-traded funds. The move comes in a space that has seen considerable turmoil since the crisis has intensified and market liquidity has been sapped.

Markets initially reacted positively to the moves but headed back lower in early trading, with the Dow Jones Industrial Average down more than 500 points.

Other initiatives include an unspecified lending program for Main Street businesses and the Term Asset-Backed Loan Facility implemented during the financial crisis. There will be a program worth $300 billion œsupporting the flow of credit to employers consumers and businesses and two facilities set up to provide credit to large employers.

Source : CNBC

RELATED NEWS

Fed Staff's Worst-Case Scenario: No Major Recovery Until Next Year: Minutes
Thursday, 9 April 2020 02:08 WIB

The worst-case scenario of the staff of the Federal Reserve for the economy is no recovery until next year, according to minutes of the central bank's March 15 policy meeting released Wednesday. The staff told officials that there were two plausible scenarios for the U.S. economy grappling with the...

RBA keeps Official Cash Rate steady at 0.25%, AUD/USD little changed
Tuesday, 7 April 2020 11:49 WIB

At its scheduled April monetary policy meeting held Tuesday, the Reserve Bank of Australia (RBA) maintains its official cash rate (OCR) at a record low of 0.25%, as widely expected. The RBA, at its emergency meeting on March 19 slashed the key rate by 25bps from 0.50% to 0.25% and announced a quant...

Bank of England Keeps Rates at Nearly Zero and Says Could Expand Asset Purchases if Necessary
Thursday, 26 March 2020 19:22 WIB

The Bank of England voted unanimously to keep interest rates at 0.1% and maintain its £200 billion program of buying UK government bond and sterling non-financial investment-grade corporate bond purchases. "Regarding the impact of asset purchases, gilt yields fell significantly following the previ...

The Fed 'is working hard to support you now,' Powell says in rare morning-television interview
Thursday, 26 March 2020 18:47 WIB

Federal Reserve Chairman Jerome Powell in a rare morning-television appearance Thursday, told Americans the central bank "is working hard to support you now." The $2 trillion stimulus package passed by the Senate last night will provide immediate relief to workers affected by the shutdown of the ec...

Fed and Other Top Central Banks Take Steps to Enhance Dollar-Swap Lines
Friday, 20 March 2020 21:28 WIB

The Federal Reserve on Friday announced it was taking steps with five major central banks to enhance the dollar swap lines designed to make dollars available to foreign institutions. In a statement, the Fed said the central banks would undertake daily 7-day maturity operations rather than weekly on...

ANOTHER NEWS
Oil prices rise on optimism OPEC+ meeting will result in supply cut
Thursday, 9 April 2020 13:05 WIB Oil prices rose on Thursday on expectations the world's largest oil producers would agree to cut production at a meeting later in the day as the industry grapples with a coronavirus-driven collapse in global oil demand. Brent crude (LCOc1) futures...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.