US decides to use "financial atomic bomb" to save from coronavirus

US decides to use “financial atomic bomb” to save from coronavirus

The US Federal Reserve System (FRS) has decided to apply measures to support the US economy, which economists compare with the atomic bomb. The corresponding message is posted on the website of the regulator.

The new program includes several measures to support the economy. Among them are unlimited purchases of government and mortgage bonds held on the balance sheets of commercial banks; credit lines to banks aimed at targeted loans to individual industries and enterprises affected by a coronavirus.

It is expected that the measures will reduce rates for end recipients of loans. In particular, the most affected business will be able to count on loans at 3.75 percent per annum. Also, special conditions will be provided to citizens in need of refinancing educational, automobile and some other types of loans.

Earlier, Finance Minister Stephen Mnuchin announced unprecedented measures to support the economy from the Fed. They envisioned the purchase of securities worth four trillion dollars. How these two programs will relate is not yet specified.

As of March 23, more than 353 thousand infected with coronavirus were detected in the world. 100 thousand of them fully recovered, 15.4 thousand died.

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