On April 1, a bipartisan group of lawmakers from the House Committee on Financial Services sent a joint letter to Federal Reserve Chairman Jerome Powell urging the Fed to expand the initial Term Asset-Backed Securities Loan Facility (TALF) to include investment-grade securities backed by unsecured consumer loans as eligible collateral.
While coronavirus has already impacted the employment status of millions of Americans, the Fed’s St. Louis district is projecting that the numbers could get much worse – to the tune of 47 million jobs lost, which would translate to a 32.1 percent employment rate.
After three stimulus packages, the most recent of which an estimated $2 trillion, Congress shows no signs of stopping. Legislators of both parties are already putting together a fourth stimulus package.
The Fed has continually pulled out all stops in an effort to aid the U.S. economy. On Monday, the Fed unveiled a new generation of lending facilities to prevent a liquidity crunch from turning into a solvency crisis for American businesses.
The credit markets faced a deepening crisis on Monday, as several funds who own mortgage bonds sought to sell billions of dollars in assets. Amid the crisis, SFA asked government leaders to step in, in a letter to the Fed.
SFA submitted a letter last Sunday, March 22, to the Federal Reserve and the Department of the Treasury calling on the two agencies to support measures that would provide immediate funding and liquidity assistance to businesses, consumers, and markets impacted by the COVID-19 outbreak.