Tag Archives: federal reserve and monetary policy

The Federal Reserve Bails Out State Budgets 2020, Explained



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For the first time in US history the Federal Reserve is buying municipal bonds from State Governments. This is a temporary fix to keep states solvent, prevent budget cuts, and avoid tax hikes during the economic downturn. Here’s exactly what’s happening.


The Federal Reserve’s New Main Street Lending Program, Explained



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Federal Reserve Chair Jerome Powell is restarting a great depression era program where the Federal Reserve buys bank’s loans to medium sized companies. This program is similar to their bond buying program, but considered to be riskier by analysts. Here’s what’s happening.


The Federal Reserve Goes All In On Liquidity; Unlimited Quantitative Easing and REPO Interventions Explained



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Today the Federal Reserve announced unlimited quantitative easing measures to stimulate liquidity in the markets. This, combined with the Federal Reserve’s actions in the REPO overnight markets, is an attempt to get banks to make more loans to consumers. Here is exactly what’s happening.


A Federal Reserve Emergency Rate Cut and $700 Billion Quantitative Easing Program Explained



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The Federal Reserve just had an emergency session where they cut the Federal Funds rate by 100 points. The federal funds rate is now a quarter of a percentage point. At the same time they have escalated their quantitative easing program to buy five hundred billion dollars worth of Treasury Bills and two hundred billion dollars worth of Mortgage Backed Securities. Here’s what the Federal Reserve hoped would happen, what actually happened, and why it matters.


The Federal Reserve Bails Out REPO Markets for $75 Billion



The Federal Reserve Just engaged in a large bailout of the short term lending REPO market. Here’s exactly what’s going on in this ongoing news story.