More on the Fed easing liquidity/credit constraints
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.