US Fed Announces $2.3trn New Loans to Support Businesses

• US Fed Announces $2.3trn New Loans to Support Businesses

The US Federal Reserve on Thursday announced a new $2.3 trillion loan to support business activities and bolster the economy as the world’s largest economy grabble with fast-spreading coronavirus.

“Our country’s highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus,” Fed Chair Jerome Powell said in a statement Thursday. “The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.”

According to the Fed, the loan is for businesses with 10,000 staff or less that generates below $2.5 billion in revenue in 2019.

The lending program “will make a significant difference for the 40,000 medium-sized businesses that employ 35 million Americans,” Treasury Secretary Steven Mnuchin said Thursday.

The announcement was on the same day the Labour Department said unemployment benefits rose more than 16 million in the last three weeks.