US Fed announces economic measures worth a total of 250 trillion yen April 10 5:30
The US Federal Reserve Board has announced a total of $ 250 trillion in funding that can effectively fund private companies virtually in response to the serious economic impact of the new coronavirus. In response, Chair Powell emphasized that for the time being, a strong monetary stance will be pursued.
This is based on the US economic policy last month.
First, the Fed will provide interest-free loans to small and medium-sized businesses for one year through private financial institutions.
In addition to buying corporate bonds from large companies, the government will buy local government bonds and other resources from the state government, where financial burdens are increasing.
In this way, it is extremely unusual for a central bank to be able to directly fund private companies other than financial institutions in a very unusual way, with a total of $ 2.3 trillion or 250 trillion yen in Japanese yen.
"The Fed has unprecedented funding, and will continue vigorously until we are convinced that the road to economic recovery is certain," said Fed Chair Powell, who spoke via the Internet after the announcement.
In the United States, the unemployment situation has continued to worsen, with unemployment insurance applications exceeding 16 million in the last three weeks. I would like to strongly promote monetary easing and reduce the impact on the real economy as much as possible.