Fed announces a slew of new programs to help markets, including open-ended asset purchases

[tacobell fan]

The Federal Reserve said Monday it will launch a barrage of programs aimed at helping markets function more efficiently in the wake of the coronavirus crisis.

Among the initiatives is a commitment to continue its asset purchasing program “in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”

Others include an unspecified lending program for Main Street businesses and the Term Asset-Backed Loan Facility implemented during the financial crisis.

Markets reacted positively to the moves, cutting most of the losses in stock market futures that had once been “limit down” in overnight trading.

 

The Fed also said it will purchase agency commercial mortgage-backed securities as part of an expansion in its asset purchases, known in the market as quantitative easing. The move represents an expansion into the commercial sector of real estate for the central bank’s acquisitions.

“We are now in QE infinity, again,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note.

The measures come on top of programs the central bank announced last week aimed at easing the flow of credit markets and the short-term finding that banks need to operate.

“The coronavirus pandemic is causing tremendous hardship across the United States and around the world. Our nation’s first priority is to care for those afflicted and to limit the further spread of the virus,” the Fed said in a statement. “While great uncertainty remains, it has become clear that our economy will face severe disruptions. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”

Monday’s announcement represents the most aggressive market intervention the Fed has made to date.

Previously, it had announced it would buy $500 billion worth of Treasurys and $200 billion in MBS. The new move represents an open-ended commitment to the QE program.

 

[AndhraneedSCS]

Deeni meaning emiti?

 

Mortgage loans kontara vellu banks daggara nundi?

[tacobell fan]

9 minutes ago, AndhraneedSCS said:

Deeni meaning emiti?

 

Mortgage loans kontara vellu banks daggara nundi?

with 401k money you can buy US Gov bonds but there are limits on how much you can buy. Now they say you can buy unlimited. 

[TechAdvice]

10 minutes ago, AndhraneedSCS said:

Deeni meaning emiti?

 

Mortgage loans kontara vellu banks daggara nundi?

common man ki em vundadu dani meaning...we still have to work for it

[AndhraneedSCS]

9 minutes ago, tacobell fan said:

with 401k money you can buy US Gov bonds but there are limits on how much you can buy. Now they say you can buy unlimited. 

Uncle, Article lo unnadi different ga undhi ga 

[tacobell fan]

4 minutes ago, AndhraneedSCS said:

Uncle, Article lo unnadi different ga undhi ga 

They announced multiple programs & i only explained about open-ended asset purchase ki meaning. 

[DummyVariable]

Unlimited quantitative easing

401ks saved

The future is bright, the future is green - at least until tomorrow.

[veeraveeraleaks]

dabbulu jalluthunnaru ga....oh my balioooo

[r2d2]

[Sucker]

3 minutes ago, r2d2 said:

[r2d2]

Just now, Sucker said:

[user789]

1 hour ago, tacobell fan said:

with 401k money you can buy US Gov bonds but there are limits on how much you can buy. Now they say you can buy unlimited. 

bonds konte banks ki money vasthundi ani aa ?

[r2d2]

Stocks get off to a rocky start to the week despite Fed's rescue efforts

[Sucker]

2 minutes ago, r2d2 said:

Stocks get off to a rocky start to the week despite Fed's rescue efforts

1week la antha set. Please be calm. Believe in thatha. 

[veeraveeraleaks]

1 minute ago, Sucker said:

1week la antha set. Please be calm. Believe in thatha. 

intha dheddd ganivi endhi ra bai nuvvu. etla set ayithadi va one week la