Fed announces new programs to keep credit flowing to the U.S. economy - The Wall Street Journal
The U.S. central bank announced it would go beyond its prior commitment of $700 billion in bond purchases to buy “the amounts needed” to keep markets functioning and the economy stable. It also announced significant new programs to keep credit flowing to businesses and consumers, including loans for students, auto buyers and small businesses.
This unprecedented action by the Fed will ease market fears and the overall downside. That being said, the big unknown is how long it will take for the world to get the upper hand on the Coronavirus. As mentioned in a previous post, if we see promising anti-viral treatments emerge this will be a significant milestone that will herald light at the end of the tunnel. The World Health Organization currently has trials underway for anti-viral treatments.
A vaccine is likely 12-18 months away which would be record timeline. We may see unprecedented global cooperation and funding accelerate around this.
In the interim, action by the Fed and a series of stimulus packages will provide additional support. If you need to speak with us about your personal situation, we are available by appointment via phone or video conferencing. For details please visit: https://hawley.advisorproducts.com/invitation