Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Fed Chairman Jerome Powell at a press conference in March. Photo: Eric Baradat/AFP via Getty Images

The Federal Reserve announced Thursday that it will support the coronavirus-hit economy with up to $2.3 trillion in loans to businesses, state and city governments — made possible in part by Treasury funds set aside in the government stimulus package.

Why it matters: It adds to the number of huge, unprecedented steps the Fed has taken during the coronavirus outbreak to blunt the effects of the resulting economic shutdown. Its actions to date are bigger than any seen during other crises in U.S. history.

The fresh Fed programs include financial support for:

  • Businesses: The Fed's Main Street Lending Program will allow for $600 billion in loans — provided through banks — to companies with as many as 10,000 workers but under $2.5 billion in revenue last year. The terms of these loans may not be as appealing as those offered under the Paycheck Protection Program (PPP) for smaller businesses (with under 500 workers), though smaller companies are still eligible. The program is expected to launch in coming weeks.
  • State and municipalities: A Fed facility will buy as much as $500 billion of short-term debt from certain states, cities and counties — a measure meant to shore up municipalities that are seeing revenues slide.

Of note: The Fed also announced a separate facility specifically for the banks handing out PPP loans to struggling mom-and-pop businesses — and it hinted that it might open up that facility to nontraditional lenders.

The Fed also broadened previously announced backstop programs to include riskier debt. The facilities are meant to support critical funding markets for big businesses that have taken a hit as a result of the coronavirus.

The backdrop: The slew of new Fed programs comes as economic conditions deteriorate at an unprecedented pace.

  • This morning, another 6.6 million Americans filed for unemployment benefits this week, adding to the whopping 10 million who have filed jobless claims in recent weeks.

Between the lines: The Fed is limited in its ability to provide direct relief — it leaves that to Congress — but it uses Treasury Department funds to support key markets, insuring against losses.

What they're saying: "Our actions today will help ensure that the eventual [economic] recovery is as vigorous as possible," Fed Chair Jerome Powell said in a press release.

  • Powell said in a webcast interview with the Brooking Institution's David Wessel on Thursday morning that it's time to talk about a plan for reopening the economy, so as to avoid a "false start."

Go deeper

2 hours ago - World

World leaders react to "new dawn in America" under Biden administration

President Biden reacts delivers his inaugural address on the West Front of the U.S. Capitol on Wednesday. Photo: Alex Wong/Getty Images

World leaders have pledged to work with President Biden on issues including the COVID-19 pandemic and climate change, with many praising his move to begin the formal process for the U.S. to rejoin the Paris Climate Agreement.

The big picture: Several leaders noted the swift shift from former President Trump's "America First" policy to Biden's action to re-engage with the world and rebuild alliances.

Updated 5 hours ago - Politics & Policy

In photos: The Biden and Harris inauguration

President Biden and first lady Jill Biden watch a fireworks show on the National Mall from the Truman Balcony at the White House on Wednesday night. Photo: Chip Somodevilla/Getty Images

President Biden signed his first executive orders into law from the Oval Office on Wednesday evening after walking in a brief inaugural parade to the White House with first lady Jill Biden and members of their family. He was inaugurated with Vice President Kamala Harris at the U.S. Capitol on Wednesday morning.

Why it matters: Many of Biden's day one actions immediately reverse key Trump administration policies, including rejoining the Paris Agreement and the World Health Organization, launching a racial equity initiative and reversing the Muslim travel ban.

Republicans pledge to set aside differences and work with Biden

President Biden speaks to Sen. Mitch McConnell after being sworn in at the West Front of the U.S. Capitol on Wednesday. Photo: Erin Schaff-Pool/Getty Images

Several Republicans praised President Biden's calls for unity during his inaugural address on Wednesday and pledged to work together for the benefit of the American people.

Why it matters: The Democrats only have a slim majority in the Senate and Biden will likely need to work with the GOP to pass his legislative agenda.