Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Fed's Mester says all emergency lending facilities should be extended

11/09/2020 | 06:30pm EST

Nov 9 (Reuters) - The emergency lending programs the Federal Reserve set up during the coronavirus pandemic have eased distress in financial markets and are still needed, Cleveland Federal Reserve Bank President Loretta Mester said on Monday.

In addition to slashing interest rates to near zero levels in March and ramping up its asset purchases, the Fed set up a slate of emergency lending facilities to support the markets for commercial paper, municipal bonds, corporate debt and more.

While some of the programs have been lightly used, Mester said their presence serves as a backstop that helps to smooth markets that are not yet in the clear after being disrupted because of the pandemic, she said.

"I don't think we're out of the extraordinary situation that they're meant to help with," Mester told reporters. "I think they are needed at this point, given where we are."

Fed Chair Jerome Powell will be working with the Treasury Department to determine if the programs should be extended beyond the end of the year, Mester said.

"But in my view, if it were me, I would extend all of them," Mester said. "The fact that they exist provides confidence to the markets."

The policymaker stressed that the Fed is not out of ammunition when it comes to stimulating the economy and that it could provide more accommodation by adjusting its asset purchase program and using other tools.

Mester also said that the economy rebounded more strongly than she expected, but gains have not been evenly spread. Despite promising news on Monday about a vaccine being developed by Pfizer and BioNTech, , Mester said she thinks economic growth will happen more slowly going forward.

The economy will need support from both fiscal and monetary policy to fully recovery, she said. "There's still a long way to go." (Reporting by Jonnelle Marte; Editing by Chris Reese and Aurora Ellis)

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
BIONTECH SE -4.02% 101.59 Delayed Quote.24.62%
PFIZER INC. -0.14% 36.7 Delayed Quote.-0.30%
Latest news "Economy & Forex"
02:34pVeolia says that the 29.9% it owns in suez's capital is not and will not be for sale - statement
01:58pFrance reports 16,642 new confirmed covid-19 cases in past 24 hours, from 21,406 on saturday - public health authority
01:56pFrance reports 141 new coronavirus deaths on sunday - health authority
01:56pEXCLUSIVE : Trump slams China's Huawei, halting shipments from Intel, others - sources
01:49pCoronavirus - france has vaccinated 422,127 people, up from 413,046 0n saturday - bfm tv citing health ministry
01:39pCanada's ambassador to U.S. shares most Biden priorities, worries about his 'buy America' policy
01:39pSuez ceo says potential offer from ardian/gip does not create uncertainties over jobs or raise antitrust problems, unlike veolia’s bid
01:36pIMF INTERNATIONAL MONETARY FUND : Remarks by Managing Director on Green Recovery at CELAC
01:35pU.S. CDC reports 394,495 deaths from the coronavirus
01:27pSuez ceo says the company is convinced france is better off with two champions in the waste management and water sector instead of one
Latest news "Economy & Forex"