Global Analysis from the European Perspective. Preparing for the world of tomorrow

The Fed said it could supply the economy with $2.3 trillion. It hasn’t come close so far

  • The Fed in March unveiled lending programs it said could provide $2.3 trillion to the economy. So far, that has totaled just $143 billion, or 6.2% of the total firepower.
  • There are several likely explanations for why what was supposed to be an infusion of cash into the economy instead has been a comparative trickle.
  • The programs, particularly the Main Street lending initiative, are complicated. There also may be less of a need as the economy improves.
  • “There are also early signs that demand for the new facilities has been relatively muted, perhaps because the terms on offer have proved relatively unattractive,” said economist Andrew Hunter of Capital Economics.

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