#MacroView: Is The “Debt Chasm” Too Big For The Fed To Fill?
Over the last month, the Federal Reserve, and the Government, have unleashed a torrent of liquidity into the U.S. markets to offset a credit crisis of historic proportions. Here is a list of programs already implemented which have already surpassed all programs during the “Financial Crisis.”
- March 6th – $8.3 billion “emergency spending” package.
- March 12th – Federal Reserve supplies $1.5 trillion in liquidity.
- March 13th – President Trump pledges to reprieve student loan interest payments
- March 13th – President Trump declares a “National Emergency” freeing up $50 billion in funds.
- March 15th – Federal Reserve cuts rates to zero and launches $700 billion in “Q.E.”
- March 17th – Fed launches the Primary Dealer Credit Facility to buy corporate bonds.
- March 18th – Fed creates the Money Market Mutual Fund Liquidity Facility
- March 18th – President Trump signs “coronavirus” relief plan to expand paid leave ($100 billion)
- March 20th – President Trump invokes the Defense Production Act.
- March 23rd – Fed pledges “Unlimited QE” of Treasury, Mortgage, and Corporate Bonds.
- March 23rd – Fed launches two Corporate Credit Facilities:
- A Primary Market Facility (Issuance of new 4-year bonds for businesses.)
- A Secondary Market Facility (Purchase of corporate bonds and corporate bond ETF’s)
- March 23rd – Fed launches the Term Asset-Backed Security Loan Facility (Small Business Loans)
- April 9th – Fed launches several new programs:
- The Paycheck Protection Program Loan Facility (Purchase of $350 billion in SBA Loans)
- A Main Street Business Lending Program ($600 billion in additional Small Business Loans)
- The Municipal Liquidity Facility (Purchase of $500 billion in Municipal Bonds.)
- Expands funding for PMCCF, SMCCF and TALF up to $850 billion.
Here is the Fed’s balance sheet through this past Wednesday (estimated at time of writing)
![](https://realinvestmentadvice.com/wp-content/uploads/2020/04/Fed-Balance-Sheet-040920.png)
It is currently expected that over the course of the next several quarters, the Fed’s balance sheet will grow to $10 Trillion in total. Such would be a $6 Trillion expansion from the previous levels.
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