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

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

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

"It took 67 days from the first reported case to reach 100,000 cases, 11 days for second 100,000 cases, and just four days for the third 100,000 cases", the WHO's director-general Tedros Adhanom Ghebreyesus said at a press briefing from the organization's Geneva headquarters.

The Fed is creating new programs for the almost 5,200 FDIC- insured USA banks, as well as finance companies and corporations to stave off business bankruptcies and keep employee paychecks flowing. The TALF will enable the issuance of securities backed by student loans, auto loans, credit card loans and loans guaranteed by the Small Business Administration.

"While great uncertainty remains, it has become clear that our economy will face severe disruptions", The Fed said in a statement Monday morning. The Fed last week restarted financial crisis-era programs to help the commercial paper and money markets, after cutting interest rates to near zero and pledging to boost its holdings of Treasuries by at least $500 billion and of mortgage securities by at least $200 billion.

The Fed will also purchase corporate bonds in both primary and secondary markets as well as via exchange-traded funds (ETFs).

Federal Reserve Chair Jerome Powell announces emergency action as the coronavirus pandemic shuts down parts of the global economy.

Similar massive falls in the so-called Purchasing Managers Index (PMI) were also largely ignored by investors in other countries.

For example, lawmakers have floated direct lending program to Main Street businesses and Boston Fed President Eric Rosengren has called on Congress to grant the central bank the authority to directly buy corporate bonds. It was burning through the $700 billion it announced eight days ago, having spent $272bn of the $500bn on Treasuries and $68bn of the $200bn of Mortgage-Backed Securities as of Friday, and looked set to have pretty much got through all of it by the end of this week. The programs were approved by the U.S. Treasury in amounts of $10 billion each.

They are reinstating the Term Asset-Backed Securities Loan Facility (TALF) to promote credit to consumers and businesses.

The New York Fed will lend to a "special goal vehicle", which will then buy bonds and issue loans to companies. The next scheduled FOMC meeting is April 29.

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