Fed signals unlimited QE, adds aid for companies, municipalities
The Federal Reserve on Monday announced a massive second wave of initiatives to support a shuttered US economy, including buying an unlimited amount of bonds to keep borrowing costs low and setting up programs to ensure credit flows to corporations and state and local governments.
BY CHRISTOPHER CONDON/ BLOOMBERG
The Fed will buy Treasuries and agency mortgage-backed securities “in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy,” and will also buy agency commercial mortgage-backed securities, according to a statement. The Fed had said a week ago it would buy at least EUR 465 billion (USD 500 billion) of Treasuries and EUR 186 billion (USD 200 billion) of agency MBS.
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