Washington has taken a series of emergency measures to save its own economy in a pandemic
The United States of America, where coronavirus entered January 21, outstripped even South Korea and Iran, which were formerly leaders, in its spread.
As of March 26, the United States ranks third in the number of recorded infections.
In response to the widespread epidemic, the White House has taken a number of measures, including travel restrictions, social distance, declaring a state of emergency, closing schools, bars and restaurants, and intensifying COVID-19 testing.
The International Monetary Fund analyzed how the coronavirus changed the economic policies of the States (according to the International Monetary Fund on March 24):
The law on additional financing of preparations for the coronavirus and response measures of 8.3 billion dollars and the law on the response to coronavirus disease in families of 104 billion was adopted. Together, this represents about 0.5% of GDP.
A law has been drafted on assistance during the coronavirus, relief and economic security of $ 2 trillion (about 10% of GDP). It includes assistance to households, an increase in unemployment benefits, food assistance, business assistance to prevent worker cuts, loans, and grants for enterprises, financing of medical facilities and health infrastructure, assistance to local governments and deferment of the payroll tax.
Also, payments for student loans were delayed by 60 days and the deadlines for filing a tax return were delayed.
Macro finance measures
The rate on federal funds (at which banks provide their reserves to other banks on a short-term loan) has been reduced to 0-0.25%.
Allowed the purchase of treasury and agency securities in the required quantity.
Enhanced options for overnight and urgent so-called repurchase transactions (purchase of a security with an obligation to resell after a specified period at a predetermined price).
The reduction in the discount window rate, which allows institutions to borrow money from the US central bank.
Reducing the cost of transactions for the sale of dollars to central banks of the largest countries in the world with an increase in the number of these banks and the term of operations with foreign currency.
The US Federal Reserve Bank also created a number of funds to support loans, the funds for which in some cases are allocated from the Stabilization Fund:
1. Commercial Securities Financing Facility - to facilitate the issuance of commercial securities by companies and municipal institutions;
2. Primary dealer loan fund - to finance primary dealers (it has the right to buy newly issued securities directly from the US Treasury), backed by a wide range of investment-grade securities;
3. Liquidity fund of a mutual fund of the money market - to provide loans to depository institutions with the aim of buying assets from fixed assets of the money market (you can spend on securities and paying off municipal debt);
4. Primary market corporate lending fund - for the purchase of new bonds and loans from companies;
5. Secondary market corporate lending fund - to ensure the liquidity of already issued bonds;
6. Urgent Lending Facility with Asset Pledging (TALF) - to support the issuance of securities secured by assets against student loans,
automobile, credit cards and loans for small businesses.
In addition, US government regulators announced support for banking organizations that use their capital and liquidity buffers for lending and take other actions to support households and businesses.
The two largest US mortgage agencies - Fannie Mae (FNMA) and Freddie Mac (FHLMC) - postponed their eviction for 60 days and postponed mortgage payments for people affected by the COVID-19 epidemic for up to a year.
Also, US authorities would pay a thousand for each adult US citizen and $ 500 per child as support in quarantine.