March 30, 2020
St. Louis Fed President James Bullard discussed the programs that the Federal Reserve has put into effect to help restore market functioning during the coronavirus pandemic. He spoke on Bloomberg Television and Radio.
The Federal Reserve Act outlines powers the Fed can use, with the consent of the Treasury, to lend in “unusual and exigent circumstances,” Bullard noted. He cited Section 13(3). “In special situations like this one—and what could be more special than this one—it makes a lot of sense to go ahead and use that power and see if we can smooth out this ride as we get to the other side of this virus,” he said.
Bullard also spoke about the fiscal package for coronavirus relief signed into law last week, saying that it had plenty of resources to handle the situation.
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