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The Federal Reserve is extending the emergency lending programs it launched in response to the economic crisis caused by the coronavirus to the end of the year. 

Why it matters: The Fed's programs were originally set to expire in September, but the central bank is now signaling that the economy will need its support for a longer period than anticipated. Congress, too, is facing looming deadlines for programs like extra unemployment benefits set to expire in coming days, when lawmakers initially hoped the coronavirus would have run its course.

Fed extends economic support programs through December

It's a signal the Fed thinks the economy will need its support for a longer period of time.

Fed chairman Jerome Powell behind a plexiglass barrier during a Congressional testimony in June

Fed chair Jerome Powell testifying before Congress on June 30. Photo: Bill O'Leary/AFP via Getty Images

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The Federal Reserve is <a class="gtmContentClick" data-vars-link-text="extending the emergency lending programs" data-vars-click-url="https://www.federalreserve.gov/newsevents/pressreleases/monetary20200728a.htm" data-vars-content-id="6cfd3468-ded5-460d-b06a-15ca2b034ffd" data-vars-headline="Fed extends economic support programs through December" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20200728a.htm" target="_blank">extending the emergency lending programs</a> it launched in response to the economic crisis caused by the coronavirus to the end of the year. Why it matters: The Fed&#x27;s programs were originally set to expire in September, but the central bank is now signaling that the economy will need its support for a longer period than anticipated. Congress, too, is facing looming deadlines for programs like extra unemployment benefits set to expire in coming days, when lawmakers initially hoped the coronavirus would have run its course.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Fed extends economic support programs through December

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