Federal Reserve Takes Drastic Steps to Prevent Depression
In an attempt to save the economy from a depression, the Federal Reserve is taking drastic steps to make borrowing easier for banks and other large entities.
The rescue plan includes unlimited bond-buying, three new credit facilities, and an upcoming main street lending program.
The Fed says the programs will provide up to $300 billion in new financing, but that didn’t keep Wall Street from falling deeper into the red.
The DOW dropped 582 points Monday. The Nasdaq lost almost 20 points. And the S&P 500 Index dipped just under 70.
But Tuesday morning’s market futures show stocks will open trading in the green.
We’re now halfway into the federal government’s 15-day period to slow the spread of coronavirus.
President Trump says once the period is over, his administration will make a decision on the next steps.
That includes possibly easing up on the federal social distancing regulations and urging businesses to re-open as soon as next week.
“We also have a large team working on what the next steps will be once the medical community gives a region the okay,” he said. “Meaning the okay to get going, to get back, let’s go to work. Our country wasn’t built to be shut down. This is not a country that was built for this. It was not built to be shut down.”
On the other hand, the president’s own health experts have said it’s too soon to tell if the guidelines are effective and warn that social distancing is still crucial to curbing the spread of the virus.