US Fed rolls out US$2.3 trillion to backstop Main Street, local governments

Fed Chair Jerome Powell said the central bank's role had now broadened beyond its usual focus on keeping markets "liquid" and functional, to helping the United States get the economic and financial space it needs to fix a dire health emergency.

WASHINGTON (Reuters) - The U.S. Federal Reserve on Thursday rolled out a broad, US$2.3 trillion effort to bolster local governments and small and mid-sized businesses in its latest move to keep the U.S. economy intact as the country battles the coronavirus pandemic.

The Fed said it would work through banks to offer four-year loans to companies of up to 10,000 employees, and begin to directly lend to state governments and more populous counties and cities to help them respond to the crisis.