Federal Reserve launches $10 billion special fund to keep credit flowing in U.S. economy

[BumRushDaShow]

Source: Philadelphia Inquirer/Inquirer.com

The Federal Reserve is launching a $10 billion special fund to keep credit flowing in the U.S. economy, yet another emergency measure as the world spirals toward a recession.

Starting Tuesday, the central bank will buy various short-term commercial loans from banks in an effort to ensure American banks have enough cash to keep lending to businesses and households in need of a financial lifeline during the crisis.

"By ensuring the smooth functioning of this market, particularly in times of strain, the Federal Reserve is providing credit that will support families, businesses, and jobs across the economy," the central bank said in a statement announcing the action.

The action is known as a "Commercial Paper Funding Facility." It helps prevent a situation where financial institutions can't repay investors for loans because of short term cash crunches. The U.S. Treasury authorized $10 billion for the Fed to begin this program.


Read more: https://www.inquirer.com/health/coronavirus/federal-reserve-coronavirus-fund-lending-20200317.html

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Full headline: Federal Reserve launches $10 billion special fund to keep credit flowing in U.S. economy during coronavirus scare

[bucolic_frolic]

1. It don't even qualify as peanuts

It don't even qualify as one peanut. $10 billion???? Brother, can you spare a dime?

'keep lending to households' ... yes, the newly unemployed are eager to borrow to pay the bills.

This is tone deaf, must be Mnuchin's idea as much as Trump's

[Traildogbob]

2. Trickle down

And the vast majority of the 850 billion bailout (1 year funding for military) will go to CEOs of major corporations that don't even pay taxes. Our tax cash. Those CEOs off shore billions annually in profit, not to save their business or prepare for disasters, or ensure workers would be taken care of. So, this is that wonderful capitalism. No damn socialism ever, communists. Use our taxes to save them, and throw us a crumb. But you can take out a loan to pay absurd hospital fees. TRump LOVES peeing on those he cares nothing for. That trickle you feel coming down. It is yellow and full of Aderal. GOP hate working people, always have and always will. But.......GOD, Guns and Gays. That will feed us. MAGA, Winning!

[Upward]

3. What Good Is Credit If I'm Out of Work and Can't Pay It Back?

?

[KWR65]

4. Do I just mail my credit card bills to the Treasury so they will pay it?

Well I can dream can't I!

[SWBTATTReg]

5. And where is all of this cash that the Banks have already from their tremendous profits ...

over the last number of years? Where is all of the cash that they've accumulated over the years? I know that they don't loan out (according to the velocity of money) 100% of their funds, so I'm wondering where in the hell are the banks and why aren't they helping in this crisis?

[rockfordfile]

6. Trump has caused the economy to run a ground since he took office

[marble falls]

7. How about taking the next $10B off the military budget. At $750B ...

They'll never miss it. Literally.

[BumRushDaShow]

8. He probably already pulled out that much

raiding DOD funding in order to wall off the southern border based on his previous "national emergency" (that was put in place real quick vs what happened for the coronavirus).