Breaking: Fed announces new 'aggressive action to confront disruptions' DXY drops below 102
|The Federal Reserve has announced that it rolled an extensive range of new programs for companies, households and small businesses in a so-called 'aggressive action to confront severe disruptions.'
With the initial reaction, the US Dollar Index started to erase its daily gains and was last seen at 102, where it was unchanged on the day.
Key takeaways
"Will buy treasuries and mortgage-backed securities in the amounts needed to ensure smooth market functioning and transmission of monetary policy."
"Using full range of authority expanding bond purchases to include agency commercial MBS as well as $300 billion new credit programs for employers, consumers and businesses."
"Establishing 2 facilities for large employers."
"One facility for new bond and loan issuance and one for secondary market facility for outstanding corporate bonds."
"Establishing term asset-backed loan facility backed by student, auto, credit card and SBA-backed loans among other assets."
"Widening money market mutual fund facility to include variable-rate demand notes and bank certificates of deposit."
"Also expanding commercial paper funding facility to support local govt by including high-quality tax-exempt cp and reducing pricing on facility."
"In coordination with US Treasury, the corporate bond facility to make loans of up to 4 years to investment grade companies."
"Will soon announce main street business lending program to support lending to eligible small and medium businesses, complementing efforts by the SBA."
"Will purchase $75 billion of treasuries and $50 bln of agency MBS each day this week."
"Daily and term repo rates to be reset to offering rate of 0.0%."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.