The United States Federal Reserve has reacted to the latest grim unemployment statistics coming out of Washington by injecting $2.3trn in loans into the US economy. More than 6.6 million registered as unemployed in the last week with a total of 17 million having been made jobless in the current pandemic.
The funding is designed to stem the flow of companies of all sizes going to the wall in the current emergency as well as provide local authorities across the nation with the wherewithal to maintain essential public services.
“The highest priority for our country must be to cope with the public health crisis by caring for the sick and limiting the spread of the virus,” said Fed chair Jay Powell. “The Fed is there to provide support and stability as much as we can during this period of limited economic activity. We will continue to use our powers forcefully, proactively and aggressively until we are confident that we are solidly on the road to recovery.”
In a communiqué accompanying the announcement, the Fed stated that its role was and would continue to be to promote maximum employment, stable prices, and the stability of the financial system and was committed to supporting the flow of credit in the economy to achieve these goals.