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Fed promises to provide almost unlimited loans in the event of the corona virus pandemic

“We will not run out of ammunition”: Fed Chairman says there is no limit to the amount of money he will inject into the US economy during a corona virus pandemic

  • Federal Reserve Chairman Jerome Powell said on Thursday that they will provide essentially unlimited loans to support the economy
  • The Fed chairman said that the bank’s efforts are aimed at helping the economy recover quickly once the coronavirus threat has disappeared
  • In a rare interview on NBC’s Today, Powell said the Fed is not going to run out of ammunition to support the economy
  • He said that the path of the economy largely depends on the length and severity of the viral outbreak
  • Powell also acknowledged that the economy may ‘be’ in recession, but said the economy itself was strong before the outbreak started
  • Coronavirus symptoms: what are they and should you see a doctor?

The Federal Reserve says there is no limit to the amount of money it will inject into the U.S. economy during the coronavirus pandemic and insists they will not run out of ammunition.

President Jerome Powell said the Federal Reserve would provide essentially unlimited loans to support the economy as long as it is damaged by the viral outbreak.

In a rare interview on NBCs Today The Fed chairman said on Thursday that the bank’s efforts are aimed at helping the economy recover quickly once the threat of the virus has passed.

When asked if the Fed would run out of ammunition to support the economy, Powell said no.

“When it comes to this lending, we won’t run out of ammunition. That’s not going to happen, “he said.

Federal Reserve President Jerome Powell said on Thursday that they would provide essentially unlimited loans to support the economy, as long as it is damaged by the corona virus outbreak

Federal Reserve President Jerome Powell said on Thursday that they would provide essentially unlimited loans to support the economy, as long as it is damaged by the corona virus outbreak

Still, the Fed president said the path of the economy largely depends on the length and severity of the viral outbreak. Fed policy is likely to have the greatest impact when the economy starts to recover, which he says could happen in the second half.

“We know that economic activity is likely to decline sharply in the second quarter … It will really depend on the spread of the virus. The virus is going to dictate the schedule here, ”he said.

“When the economy starts to recover, we will be there to ensure that the recovery is as strong as possible.”

Powell also acknowledged that the economy may “be” in recession, but said this is a unique downturn as it was caused by efforts to control the disease.

He said the economy itself was strong before the outbreak started.

“If we get the virus under control fairly quickly, economic activity can resume and we want to make that recovery as powerful as possible,” Powell said.

It comes after the Fed has taken numerous bold and unprecedented steps this month to strengthen lending and the economy.

It has cut its reference rate to almost zero, started an unrestricted bond buying program to pump money into the financial system and set up several contingency programs to ensure that banks can continue to provide loans to businesses and city and state governments .

The Federal Reserve said it would provide essentially unlimited loans to support the economy as long as it is damaged by the viral outbreak

The Federal Reserve said it would provide essentially unlimited loans to support the economy as long as it is damaged by the viral outbreak

The Federal Reserve said it would provide essentially unlimited loans to support the economy as long as it is damaged by the viral outbreak

Powell said the Fed’s ability to borrow is somewhat constrained by the treasury’s capital to offset any credit losses. He said the Fed can borrow $ 10 for every $ 1 in cash the Treasury provides.

The economic bailout bill passed by the Senate in early Thursday includes $ 425 billion that the Treasury can use to stop the Fed.

That would allow the Fed to ramp up its credit programs to an astronomical $ 4.25 trillion.

“Where … credit is not flowing, in these unique circumstances we have the opportunity to step in temporarily and provide those loans and we will continue to do so aggressively and outright,” Powell said.

President Donald Trump has criticized Powell and the Fed in the past. Earlier this month, Trump demanded leadership of the Fed and took further action on interest rates.

Asked about his response to Trump’s criticism and whether it has affected the work of the Fed, Powell said, “We know what we do is important to all Americans, and we try our very best to serve them in a way which is completely non-political. … that is our only focus. We don’t let anything else come to our mind. ‘

President Donald Trump has criticized Powell and the Fed in the past. Earlier this month, Trump demanded leadership of the Fed and took further action on interest rates

President Donald Trump has criticized Powell and the Fed in the past. Earlier this month, Trump demanded leadership of the Fed and took further action on interest rates

President Donald Trump has criticized Powell and the Fed in the past. Earlier this month, Trump demanded leadership of the Fed and took further action on interest rates

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