The Federal Reserve announced a bevy of new moves aimed at getting another $2.3 trillion of financing into businesses and revenue-pinched governments. Among the Fed’s measures were details regarding its Main Street business lending program and several other initiatives it is undertaking to backstop the reeling U.S. economy. The central bank also provided more detail on its market interventions, including plans to buy corporate bonds both at an investment-grade level as well as junk, bonds. Under provisions outlined for the first time, the loans would be geared toward businesses with up to 10,000 employees and less than $2.5 billion in revenues for 2019. Principal and interest payments will be deferred for a year. This $2.3 Trillion on top of the already approved $2.2 Trillion Cares Act.
Oil prices jumped on reports that Saudi Arabia and Russia had reached a deal on a deep output cut, and that the cuts could reportedly be as high as 20 million barrels per day. OPEC and its allies, known as OPEC+, would reportedly cut output by 12 million barrels per day, with an additional 5 million barrels per day cut by producers outside of the group.
Millions of coronavirus-related job losses and the shutdown of large parts of the U.S. economy have battered consumers and dragged confidence down to a nine-year low. US consumer sentiment sank to 71 in early April from 89.1, marking the biggest-ever one-month decline and putting the index at lowest level since 2011.
US Capital Markets are closed today in observance of the Good Friday holiday.
With Northwest Quadrant Wealth Management, I’m Tyler Simones.