Macro Analysis / Global

Federal Reserve Board releases new term sheet for the Primary Market Corporate Credit Facility, adding pricing and other information

June 29, 2020

Federal Reserve Board releases new term sheet for the Primary Market Corporate Credit Facility, adding pricing and other information

For release at 1:30 p.m. EDT

The Federal Reserve Board on Monday released a new term sheet for the Primary Market Corporate Credit Facility, adding pricing and other information. As detailed in an FAQ released today, pricing will be issuer-specific and informed by market conditions. Prices will also be subject to minimum and maximum spreads over comparable maturity Treasury securities.

By standing ready to provide credit to qualifying issuers of corporate bonds in periods of stress, the PMCCF serves as a funding backstop, supporting market liquidity and the availability of credit for large employers. The Primary Market and Secondary Market Corporate Credit Facilities were established with the approval of the Treasury Secretary and with $75 billion in equity provided by the Treasury Department from the CARES Act.

For media inquiries, call 202-452-2955

Last Update: June 29, 2020

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Macro Analysis / Global

Federal Reserve publishes updates to the term sheet for the Municipal Liquidity Facility

Federal Reserve
11 May 2020

May 11, 2020

Federal Reserve publishes updates to the term sheet for the Municipal Liquidity Facility

For release at 10:30 a.m. EDT

The Federal Reserve Board on Monday published updates to the term sheet for the Municipal Liquidity Facility (MLF) to provide pricing and other information.

The MLF, which was established under Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary, will offer up to $500 billion in lending to states and municipalities to help manage cash flow stresses caused by the coronavirus pandemic.

For media inquiries, call 202-452-2955.

Last Update: May 11, 2020


 
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Macro Analysis / Global

Federal Reserve Board announces updates to Secondary Market Corporate Credit Facility (SMCCF), which will begin buying a broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large employers

Federal Reserve
15 June 2020

June 15, 2020

Federal Reserve Board announces updates to Secondary Market Corporate Credit Facility (SMCCF), which will begin buying a broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large employers

For release at 2:00 p.m. EDT

The Federal Reserve Board on Monday announced updates to the Secondary Market Corporate Credit Facility (SMCCF), which will begin buying a broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large employers.

As detailed in a revised term sheet and updated FAQs, the SMCCF will purchase corporate bonds to create a corporate bond portfolio that is based on a broad, diversified market index of U.S. corporate bonds. This index is made up of all the bonds in the secondary market that have been issued by U.S. companies that satisfy the facility's minimum rating, maximum maturity, and other criteria. This indexing approach will complement the facility's current purchases of exchange-traded funds.

The Primary Market and Secondary Market Corporate Credit Facilities were established with the approval of the Treasury Secretary and with $75 billion in equity provided by the Treasury Department from the CARES Act.

For media inquiries, call 202-452-2955

Last Update: June 15, 2020


 
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Macro Analysis / Global

Federal Reserve Board announces an expansion in the number and type of entities eligible to directly use its Municipal Liquidity Facility

Federal Reserve
3 June 2020

June 03, 2020

Federal Reserve Board announces an expansion in the number and type of entities eligible to directly use its Municipal Liquidity Facility

For release at 1:00 p.m. EDT

The Federal Reserve Board on Wednesday announced an expansion in the number and type of entities eligible to directly use its Municipal Liquidity Facility (MLF). Under the new terms, all U.S. states will be able to have at least two cities or counties eligible to directly issue notes to the MLF regardless of population. Governors of each state will also be able to designate two issuers in their jurisdictions whose revenues are generally derived from operating government activities (such as public transit, airports, toll facilities, and utilities) to be eligible to directly use the facility.

In addition to the expanded terms outlined above, the MLF continues to be directly open to U.S. states, the District of Columbia, U.S. cities with a population of at least 250,000 residents, U.S. counties with a population of at least 500,000 residents, and certain multistate entities.

The MLF was established under Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary. It will offer up to $500 billion in lending to states and municipalities to help manage cash flow stresses caused by the coronavirus pandemic.

For media inquiries, call 202-452-2955.

Last Update: June 03, 2020


 
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Macro Analysis / Global

Federal Reserve Board and Federal Open Market Committee release economic projections from the June 9-10 FOMC meeting

Federal Reserve
10 June 2020

June 10, 2020

Federal Reserve Board and Federal Open Market Committee release economic projections from the June 9-10 FOMC meeting

For release at 2:00 p.m. EDT

The attached table and charts released on Wednesday summarize the economic projections and the target federal funds rate projections made by Federal Open Market Committee participants for the June 9-10 meeting.

The table will be incorporated into a summary of economic projections released with the minutes of the June 9-10 meeting. Summaries of economic projections are released quarterly.

Projections (PDF) | Accessible Materials

For media inquiries, call 202-452-2955.

Last Update: June 10, 2020


 
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Macro Analysis / Global

Federal Reserve issues FOMC statement

Federal Reserve
10 June 2020

June 10, 2020

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EDT

The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.

The coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world. The virus and the measures taken to protect public health have induced sharp declines in economic activity and a surge in job losses. Weaker demand and significantly lower oil prices are holding down consumer price inflation. Financial conditions have improved, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.

The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term. In light of these developments, the Committee decided to maintain the target range for the federal funds rate at 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.

The Committee will continue to monitor the implications of incoming information for the economic outlook, including information related to public health, as well as global developments and muted inflation pressures, and will use its tools and act as appropriate to support the economy. In determining the timing and size of future adjustments to the stance of monetary policy, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

To support the flow of credit to households and businesses, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions. In addition, the Open Market Desk will continue to offer large-scale overnight and term repurchase agreement operations. The Committee will closely monitor developments and is prepared to adjust its plans as appropriate.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Loretta J. Mester; and Randal K. Quarles.

Implementation Note issued June 10, 2020

Last Update: June 10, 2020


 
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