New Measure On Outbreak From Fed

New Measure On Outbreak From Fed

The US Federal Reserve (Fed) has announced that it will launch the application of loan ease (PDCF), which is afforded to market makers to support the lending needs of the public and businesses. According to a statement from the Fed, the application, which was implemented during the 2008 global financial crisis to open a new liquidity window to market makers, will support the markets to trade at a level without distress and will provide credit opportunities to businesses and households. In the event of this application, it was announced that overnight and up to 90 days of term funding would be offered, the application would start on March 20, be valid for 6 months and could be extended in accordance with the terms. The Fed took another step today to boost liquidity in markets to counter the economic effects of the new type of coronavirus (Covid-19) outbreak.