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While testifying testimony before the House Financial Services Committee on Tuesday, Jerome Powell, Chairman of the Federal Reserve System, said there was very little demand for loans below $1 million in the Main Street Lending Program.

Additional takeaways

“Proceeding with a lower loan amount might require a different program from Main Street.”

“Smaller loans would be more in line with the Paycheck Protection Program (PPP) loans that can be forgiven.”

“Question for how to reopen are for state and local elected officials.”

“Have relaxed a number of banking regulations temporarily and are open to do more of that.”

“Stress tests themselves always err on the side of safety.”

“No plans to change banks living will review schedule.”

“So far, banking system has held up well.”

“Smaller banks may bear a larger burden here, greater exposure to things like real estate.”

“Not seeing demand for very, very small loans.”

“Lending at the small end involves a lot of personal guarantees, would have to start from scratch to build that capability.”

Market reaction

The greenback preserves its strength against its rivals in the American trading hours. As of writing, the US Dollar Index was up 0.52% on a daily basis at 94.03.