Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
US Federal Reserve is printing dollars
Stock Market

The U.S. Federal Reserve is printing dollars to support the market in times of crisis

29.11.2020
2 min read

Why the FRS is printing dollars: market financing program

The world financial market is going through hard times. There is an unprecedented stir caused by the fact that companies are getting rid of their assets on a massive scale. During the month, operations worth $24 trillion, which exceeds U.S. GDP. Countries are taking immediate action to soften the blow, and the Fed is printing dollars.
The Federal Reserve has made changes to its asset buyback program, and it has virtually unlimited rights. The Federal Reserve will buy the country’s government bonds and mortgage-backed securities. The volume of acquisition will depend on the need of markets to improve their functioning. In fact, this means that the Fed can buy as many bonds as it sees fit.
No new money has been printed in the US since 2014, but last year it was time to turn on the machine. In September 2019, after the repo situation, the Fed started actively buying short-term government bills. The purchase was made for $60 billion a month. Due to the coronavirus epidemic and its impact on world markets, it was necessary to expand the program to be able to buy all types of public debt securities, the volumes increased to $700 billion.

US Federal Reserve is printing dollars

However, even this amount could not satisfy all needs. Panic in the market continued, investors rushed to suspend projects to keep as much cash as possible. So Washington took a new step – now the monthly limit will be spent within a week. The Federal Reserve Bank, which is in New York, was instructed to buy daily treasury and mortgage bonds worth $75 billion and $50 billion respectively. This decision will finance the market by $625 billion, and to increase the Federal Reserve’s balance sheet by record amounts.
The program continues and the next round assumes unlimited acquisition of assets. In addition, the Fed is buying up corporate bonds to keep prices at current levels and reduce yields. Such measures will allow large companies to avoid, to some extent, the credit difficulties that followed the collapse in global markets. The Federal Reserve plans to finance a $300 billion lending segment for consumers and businesses. For this purpose, the Ministry of Finance will attract the Foreign Exchange Market Stabilization Fund.
Large companies use the corporate credit line of the primary market to issue bonds and loans. In addition, it supports the solvency of business, helping to carry out a number of processes during the crisis. A credit line designed for the secondary market will increase the liquidity of the corporate bond market.

Tags: Stock Market
0
Previous Post How the postponement of the Olympic Games in Tokyo will affect the Japanese economy Next Post Raiffeisenbank analysts: risks limit the ruble potential

You Might Also Like

FedEx reports
Stock Market
FedEx reports quarterly earnings
16.11.2022
Russian Market
Stock Market
Investments in UIFs are increasing in the Russian market
04.11.2021
Miles Mobility
Stock Market
Volkswagen sold its car-sharing business to Miles Mobility
03.01.2023
The number of private investors
Stock Market
The U.S. stock market has a record number of private investors
03.04.2022
co-working network Wework
Stock Market
The co-working network WeWork plans to become a public company through SPAC
14.12.2021
Global financial services
Stock Market
World financial services and public literacy
12.07.2020

Recent Posts

  • 1Apple Search
    Apple Corporation is working on its own search engine, Apple Search
    28.01.2023
  • 2Tom Ford brand
    Estee Lauder made a deal to buy the fashion brand Tom Ford
    27.01.2023
  • 3Golden Visa
    The Golden Visa program has brought Portugal more than 6 billion euros during its existence
    26.01.2023
  • 4Michael Steinhardt
    Michael Steinhardt: the story of a prominent American investor
    25.01.2023
  • 5Cessna
    The Cessna aircraft company: how it all began
    24.01.2023

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Chinese taxi service DiDi Chuxing: a struggle for the market

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

Bybit
Cryptocurrency exchange Bybit provided information about the volume of stored assets
29.01.2023
Apple Search
Apple Corporation is working on its own search engine, Apple Search
28.01.2023
Tom Ford brand
Estee Lauder made a deal to buy the fashion brand Tom Ford
27.01.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Chinese taxi service DiDi Chuxing: a struggle for the market
  • Annual report of the Central Bank: state of reserves and forecast for the future
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics