WASHINGTON (Reuters) – The U.S. Federal Reserve reacted quickly to the coronavirus crisis with open-ended programs to keep financial markets running and ensure major business could raise money as they typically do through big capital markets.
FILE PICTURE: Flags are visualized at the top of Federal Reserve Board structure on Constitution Avenue in Washington, U.S., March 19,2019 REUTERS/Leah Millis
By forcing huge parts of the economy to just stop operating, nevertheless, the current crisis poses a direct hazard to the hundreds of thousands of little and medium-sized organisations that do not raise money by providing stocks or bonds, but rely on myriad mixes of bank loans, owner’s capital and, in many cases, personal credit cards or house equity loans.
The Fed, in coordination with the Treasury Department, has actually now revealed a Main Street Lending Center as one of its linchpin programs in the crisis.
Here are the details:
WHO WILL PAY FOR IT?
In the $2.3 trillion emergency situation