The US Federal Reserve has provided $ 2.3 trillion in support to local governments and small and medium-sized companies to tackle the Corona Virus pandemic.
According to Reuters, the US central bank said it would work through banks to provide four-year loans to companies with up to 10,000 employees and purchase state and county bonds and high-density cities directly to help them cope with the health crisis.
While the move may become the most unique step during the current crisis, Jerome Powell, Chairman of the Reserve Board, said that the role of the Central Bank has expanded beyond its usual focus on maintaining liquidity in the markets and ensuring its ability to continue to work, to include the need for an economic and financial outlet needed by the United States to reform an emergency health situation.
Powell said in a statement issued on Thursday, the highest priority for our country should be to address this public health crisis, provide care for patients and limit the spread of the virus ... the role of the Reserve Board is to provide the greatest amount of relief and stability during this period of compressed economic activity, and our actions today will help to Ensure that post recovery is as strong as possible.
The new program is pumping up to $ 500 billion to local governments, which are on the front lines of coping with the disease while they may see tax breaks as unemployment rises and firms halt under social separation rules aimed at curbing the spread of the virus.
