Fed seeks to expand main street lending facility to non-profit organizations

Having announced an extension of its private bond-buying facilities earlier, the US Federal Reserve (Fed) recently offered another push toward restoring the investors’ confidence.

Key quotes

The Federal Reserve Board on Monday announced it will be seeking public feedback on a proposal to expand its Main Street Lending Program to provide access to credit for nonprofit organizations.

As with the existing Main Street Lending Program, which targets small and medium-sized businesses, the proposed expansion would offer loans to small and medium-sized nonprofits that were in sound financial condition before the coronavirus (COVID-19) pandemic and could benefit from additional liquidity to manage through this challenging period.

FX implications

 Although the early Asian session fails to respond to the news, the Fed’s efforts are less likely to go unnoticed and can extend the late-Monday risk-on sentiment to Tuesday.