According to Treasury Secretary Steven Mnuchin, Fed will play key role in measures to support the U.S. economy
The Federal Reserve will offer up to $4 trillion in loans to help businesses hit by coronavirus pandemic. Steven Mnuchin stated that the loans should help small, middle and large businesses to get through first 90 to 120 days after having implemented epidemic response measures.
Credit programs will include retention loans for small businesses to help them keep their workers and pay their wages. The amount will cover about 50% of the workforce. Loans will be forgiven to companies, which keep their employees.
Moreover, the bill will involve extended unemployment insurance for people who lose their jobs due to the pandemic. American households should receive checks from the government, four-member family should receive average check of $3,000. As Fed program should focus on immediate coronavirus consequences, a further rescue package should be passed by Congress. Mnuchin suggested that Congress should offer up to $500 billion in case the U.S. economy shutdown would last longer than expected.