How many times have you heard the saying: “Don’t fight the Fed?”
Over the course of the last month, the Fed has taken very aggressive actions to help fight off the economic effects of the coronavirus. Some of which include:
- Cutting rates by 100bps in March to near 0%
- Launching Quantitative Easing (QE4) worth $700 billion
- Announcing it would provide up to $300 billion in new financing to small businesses
- Extending lines of credit to companies
- Extending swap lines to various countries
- Participating in the overnight commercial paper markets to make sure there is enough liquidity
Well, today the Fed took it up a notch and is throwing even more money at the markets to make sure everyone is secure, including small businesses and municipalities, as well as, expanding Term Asset-Backed Securities Loan Facility, or TALF. The initiative is aimed at spuring consumer credit lending. Today, the Fed is doing the following:
- Taking steps to provide up to $2.3 trillion in loans
- Providing…
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