More on the Fed easing liquidity/credit constraints

Author: Eamonn Sheridan | Category: Central Banks

I posted the news here earlier:

This another step from the Federal Reserve to help ease liquidity and credit constraints/pressures. The full statement from the Bank is here, link.

 A couple of pertinent snippets:
  • To ease strains in the Treasury market resulting from the coronavirus and increase banking organizations' ability to provide credit to households and businesses
  • Liquidity conditions in Treasury markets have deteriorated rapidly
  • regulatory restrictions that accompany this balance sheet growth may constrain the firms' ability to continue to serve as financial intermediaries and to provide credit to households and businesses
  • The change... will mitigate the effects of those restrictions and better enable firms to support the economy.

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