Bullard Says Unemployment Could Rise to 30%

Fed's Bullard Coronavirus shutdown not a recession but an investment in survival

Fed president: Unemployment might reach 30%, surpassing Great Depression levels

The U.S. central bank said it will purchase Treasury securities and agency mortgage-backed securities "in the amounts needed to support smooth market functioning and effective transmission of monetary policy".

They will also expand their tools to "support the flow of credit to households and businesses". "There's no doubting that the Fed is doing everything within its power to see the economy through this period of unbelievable turmoil", Erlam said.

The Fed estimates the impact of its measures to provide about $300 billion in new financing available to businesses.

"While great uncertainty remains, it has become clear that our economy will face severe disruptions. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate", the statement said.

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It was originally hoped that the pandemic would be at a manageable position by July, meaning the Olympics would be held as normal. Carroll's comments came after Canada announced it would not send its team to the Olympics and Paralympics in the summer of 2020.

The Fed had initially announced that it will purchase approximately $200 billion in mortgage-backed securities and $500 billion US Treasuries.

Bullard also said the Fed was far from being "out of bullets", as some Fed watchers have claimed.

Both programs will last until September 30, 2020.

The index jumped by 452.12 points, beating the previous record of 431 points, following weeks of struggles as the United Kingdom fights the huge economic impact from the COVID-19 outbreak.

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The market initially reacted positively to the prospect of limitless stimulus for the US economy. USA corporate credit investors for their part welcomed the Fed's move, sending up prices of US investment-grade corporate bond exchange-traded funds.

Bitcoin has suddenly recovered back above $6,000 after the US Federal Reserve announced that it is planning to further increase liquidity in the markets in a bid to soften the brutal blow of the coronavirus crisis on the US economy. The programs were approved by the U.S. Treasury in amounts of $10 billion each.

Through the Term Asset-backed securities Loan Facility (TALF), the Fed is accepting bundled groups of assets secured by auto loans, credit cards, student loans and other types of credit.

The New York Fed will lend to a "special objective vehicle", which will then buy bonds and issue loans to companies.

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Senate Majority Leader Mitch McConnell has urged senators to "signal to the public that we're ready to get this job done". Trump, while praising Cuomo's effort for NY , said "we're a country not based on nationalizing our business".

Global stock markets are being boosted by the Fed's pledge Monday that it will run an open-ended asset purchase program amid the global coronavirus outbreak. The next scheduled FOMC meeting is April 29.

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