Fed takes further action to contain economic fallout

Summary

The challenges faced by COVID-19 the Fed announced additional $750bn in loan support.With this additional action, the Fed has committed to providing $2.3Tn in loan to support the economy.Given the historic rise in unemployment claims it's not surprising that the Fed has taken further actions to contain the economic fallout.

Key points

• Key points:
• Initial jobless claims for the week ending on April 4th nearly matched the historic surge from the prior week with 6.6M people filing for unemployment benefits.
• The Fed expanded the corporate credit programs by $750bn and broadened the scope of securities available that have access to the facility.

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