As the Main Street lending facility wraps up its first full week of operation, Rosengren reported brisk interest on the borrowing side amid what looks like tepid interest from banks thus far.
"Of course there is a learning curve, but we are seeing tremendous interest in the loans from businesses," he said in prepared remarks. "Lenders are determining how they'll participate in and communicate about the program. Borrowers will need to persist during this ramp-up phase."
In addition, the Fed now will now buy 95% of the loans, an effort to ease the risk for participating banks. The central bank official said such programs as well as the other measures the Fed has taken will be important as the economy struggles to get back on its feet.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Former Fed Economists Urge Easier Terms for ‘Main Street’ LoansTwo former Federal Reserve economists said the Fed and Treasury Department should ease terms and increase bank fees to boost participation in the central bank’s new effort to lend directly to small and midsize U.S. businesses.
Read more »
Treasury yields move higher ahead of Fed speechesU.S. government debt prices were lower Friday morning as traders awaited speeches from the Fed and monitored the latest developments in the coronavirus crisis.
Read more »
How the Black Panther Party Survival Programs Fed a MovementThis Black Panther Party member helped feed a movement. Fifty years later, he still sees its impact.
Read more »
All-star investor Rich Bernstein warns Fed policies are setting markets up for long-term problems - and may spark a bond bubbleInstitutional Investor Hall of Famer Richard Bernstein is concerned unprecedented Federal Reserve policies will eventually cause serious harm.
Read more »
Economic Injury Disaster Loans Are Back: A Renewed Lifeline For Small BusinessesThe low-interest loans had been restricted to agricultural businesses since April. Now any small business with less than 500 employees can qualify.
Read more »
Debate rages over new lifeline for small business as loan program endsWashington’s massive small business rescue is ending after delivering more than half a trillion dollars to millions of employers. Now, everyone from key lawmakers to the Federal Reserve says it may not be enough
Read more »