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US: Federal Reserve extends lending facilities to end of 2020

The US Federal Reserve announced on Tuesday that it has decided to extend its lending facilities that were scheduled to expire on or around September 30th through December 31st.

“The three-month extension will facilitate planning by potential facility participants and provide certainty that the facilities will continue to be available to help the economy recover from the COVID-19 pandemic,” the Fed explained in its press release. “The Board’s lending facilities have provided a critical backstop, stabilizing and substantially improving market functioning and enhancing the flow of credit to households, businesses, and state and local governments.”

Market reaction

The US Dollar Index edged slightly lower on this announcement and was last seen gaining only 0.05% on the day at 93.70.

FX Street

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