The US Federal Reserve Board (FRB) will fund the market through the purchase of US short-term government bonds from the 15th in order to improve the situation where funds are not flowing smoothly in the short-term financial market where financial institutions trade. Announced to increase supply. Measures that President Powell announced on the 8th “will be announced soon”. The aim is to quickly pick up the market uneasiness.
For the time being, the purchase of short-term government bonds will be conducted at a pace of about 60 billion dollars a month (approximately 6.5 trillion yen) until at least June 2020. The extraordinary funding that the Federal Reserve Bank of New York, which is responsible for financial adjustments, has started in September has decided to continue until at least January 20th.
The FRB's decision to turn back to expanding its assets, but the statement said it was a "pure technical measure" and reiterated that it did not cut back on a easing policy that would unnecessarily stimulate the economy. As he continues to receive pressure from President Trump to take on a large-scale monetary easing, he sent out carefully not to mislead the market.
FRB after Lehman shock ...
