Fed’s offered flood of credit so far just a trickle in practice

© Reuters. FILE PHOTO: The Federal Reserve on Mayday in Washington By Howard Schneider (Reuters) – The Federal Reserve’s promise in the early days of the coronavirus pandemic to flood the U.S. economy with trillions of dollars seemed like the proverbial central bank bazooka. It has been more of a trickle in practice, with activity […]

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U.S. states, cities may snub Fed lending program over high rates

© Reuters. FILE PHOTO: The Federal Reserve on Mayday in Washington By Karen Pierog CHICAGO (Reuters) – High borrowing costs will limit participation in a $500 billion U.S. Federal Reserve short-term borrowing program set up to address state and city revenue shortfalls due to the economic fallout from the coronavirus outbreak, analysts said. While Illinois, […]

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Fed policymakers are negative on negative rates

2/2 © Reuters. FILE PHOTO: The Federal Reserve on Mayday in Washington 2/2 By Ann Saphir (Reuters) – U.S. Federal Reserve policymakers say they will do what it takes to cushion an economy crushed by the widespread lockdowns aimed at slowing the coronavirus spread, but there’s one thing they probably won’t do: take interest rates […]

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For central banks, hope for precision fades amid pandemic uncertainty

2/2 © Reuters. FILE PHOTO: The Federal Reserve on Mayday in Washington 2/2 By Howard Schneider and Leika Kihara WASHINGTON/TOKYO (Reuters) – Central bankers who have spent a generation researching how their words influence the economy and honing the craft of “forward guidance” are now effectively tongue-tied by a health crisis that has no clear […]

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