The Fed Will Pump Another $2.3 Trillion Into The Economy. Here’s Why This Time Is Different.

By Sarah Hansen Forbes Staff
Markets

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(Updated 8:59 a.m. ET, April 9, 2020)


Topline: The Federal Reserve announced on Thursday that it will inject another $2.3 trillion to prop up the American economy through a series of unprecedented emergency initiatives that will extend its reach to small and mid-size businesses as well as state and municipal governments.

• The Fed also released new details about its highly anticipated Main Street Lending Program, which is aimed at small and mid-sized business that are struggling because of the slowdown; that program will offer 4-year loans to companies with fewer than 10,000 workers or revenues of less than $2.5 billion. 
• "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," Federal Reserve Board Chair Jerome H. Powell said in a statement. "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."

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Crucial quote: "The Fed has launched a mind-boggling number of liquidity initiatives since the start of March and markets are somewhat inured to them at this point. The Fed is creating a powerful backdrop and it’s very hard to see the SPX hitting new lows," says Vital Knowledge founder Adam Crisafulli.


This is a developing story. Please check back for updates.


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