April 9, 2020 |
$2.3 trillion in liquidity provided to support economy.
The Federal Reserve made history on Thursday by moving aggressively to provide up to $2.3 trillion in liquidity commitments to support the economy. This policy intends to bolster households, small and medium-sized firms, and the ability of state and local governments to float debt to ensure critical services during the pandemic.
But the liquidity commitment put forward by the Fed strongly suggests that this is the latest in a series of policy steps to address the economic fallout of the pandemic and is not the final word. The Fed is clearly not out of ammunition, nor is it done exhausting its potential liquidity commitments based on the congressional backstop inside the CARES Act.
• Joe Brusuelas, Chief Economist
Compliments of RSM – a member of the EACCNY.