BREAKING: The Fed on Thursday unveiled emergency programs that could dole out more than $2 trillion in lending to businesses of all sizes, as well as to struggling state and city governments, in an effort to keep the economy afloat as it is ravaged by the coronavirus pandemic.

The programs will be backed by $165 billion of the bailout funds in the recently passed coronavirus relief package, set aside to cover any losses from the Fed loans, as well as $30 billion that had previously been committed by the Treasury Department.

Here’s the Fed’s press release. https://www.federalreserve.gov/newsevents/pressreleases/monetary20200409a.htm

Fed pulls out $2T lending bazooka to boost businesses, cities https://www.politico.com/news/2020/04/09/federal-reserve-coronavirus-relief-176808

An interesting tidbit here: The Fed will offer loans to banks collateralized by loans to companies that are already highly indebted, which will help riskier businesses that don’t have direct access to the central bank’s lending programs to borrow from the private sector.

https://twitter.com/vtg2/status/1248238828919427074