Federal Reserve Encouraging Financial Assistance amid Coronavirus-Caused Economic Concerns
A statement just released by the Federal Reserve says they “recognize the potential impact of the coronavirus on the customers, members, and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions”.
The statement follows a steep down day for the stock market, as well as another record-low close for the 10-year treasury yield.
U.S. markets have reacted strongly to economic threats of the coronavirus recently, which is approaching 110,000 confirmed cases and 4,000 deaths globally. As of noon eastern today, there had been 423 cases in the U.S. with 19 deaths.
The Fed’s announcement of financial assistance comes on the heels of an $8 Billion emergency spending package, aimed at responding to the coronavirus outbreak, at a time when the federal deficit is nearing $1 Trillion. Federal Reserve Chairman Jerome Powell also testified recently that “the federal budget is on an unsustainable path, with high and rising debt”.