Economics
Fed to Buy Junk Bonds, Lend to States in Fresh Virus Support
- Will provide as much as $2.3 trillion in additional aid
- Municipal facility will offer as much as $500 billion
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As fresh evidence of the economic toll from the coronavirus pandemic floods in, the Federal Reserve unleashed another round of emergency measures, including a pledge to provide support to risky corners of financial markets that have been some of the hardest hit.
The Fed said Thursday it will invest up to $2.3 trillion in loans to aid small and mid-sized businesses and state and local governments as well as fund the purchases of some types of high-yield bonds, collateralized loan obligations and commercial mortgage-backed securities.