US Federal Reserve Provides 382 Trillion Won Liquidity to Prepare for COVID Economic Recession

Announcement of Corporate Bonds, Local Bonds, and Asset-Backed Securities Purchase Plan
Unlimited Purchase of US Treasury Bonds and Mortgage-Backed Securities Also Announced

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The U.S. Federal Reserve (Fed) has announced emergency liquidity measures to respond to the economic recession caused by the novel coronavirus disease (COVID-19).

According to the Associated Press, on the 23rd (local time), the Fed stated it would supply up to $300 billion (approximately 382 trillion KRW) in liquidity. This is expected to be carried out by establishing three lending facilities and purchasing corporate bonds, municipal bonds, and asset-backed securities.

Additionally, the Fed announced it would maintain interest rate levels and purchase U.S. Treasury bonds and mortgage-backed securities without limits to ensure smooth market functioning.