Federal Reserve fires another shot – unlimited QE

Among the measures: The central bank will add commercial MBS to its QE (which previously was for government paper and residential MBS). “In the amounts needed,” suggests there’s no upper bound to QE.

New lending programs to support credit employers, consumers, and businesses, adding up to $300B.

Establishment of the Term Asset-Backed Securities Loan Facility (TALF) to support further flow of credit to consumer and businesses.

The bank expects to soon announce a Main Street Lending Program.

The FRBNY moments later chimes in, saying it’s planning to buy $75B of Treasury paper and $50B of MBS every day this week. CMBS buys are to begin this week as well.

Markets are bumping up just a bit in response, the S&P 500 now down 1.75% vs. 3% earlier.

https://seekingalpha.com/news/3554146-federal-reserve-fires-another-shot-unlimited-qe