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The US Federal Reserve (Fed) already released the text of the Chairman Jerome Powell’s testimony 18 hours earlier than scheduled time, with the key highlights found below.

“The precipitous drop in economic activity has caused a level of pain that is hard to capture in words, as lives are upended amid great uncertainty about the future.”

“In addition to the economic disruptions, the virus has created tremendous strains in some essential financial markets and impaired the flow of credit in the economy.”

“The Federal Reserve’s response to this extraordinary period has been guided by our mandate to promote maximum employment and stable prices for the American people, along with our responsibilities to promote stability of the financial system.“

“We are committed to using our full range of tools to support the economy in this challenging time even as we recognize that these actions are only a part of a broader public-sector response.” 

“In mid-March, offshore US dollar funding markets also came under stress. In response, the Federal Reserve and several other central banks announced the expansion and enhancement of dollar liquidity swap lines.”

“In addition, the Federal Reserve introduced a new temporary repurchase agreement facility for foreign monetary authorities.“

“These actions helped stabilize global U.S. dollar funding markets, and they continue to support the smooth functioning of US Treasury and other financial markets as well as U.S. economic conditions.”

“To support the longer-term, market-based financing that is critical to economic activity, the Federal Reserve took a number of bold steps.”

“These steps were designed to ensure that credit would flow to borrowers and thus support economic activity.”

“The tools that the Federal Reserve is using under its 13(3) authority are for times of emergency, such as the ones we have been living through. “

“When economic and financial conditions improve, we will put these tools back in the toolbox.”

“The Board made several adjustments, many temporary, to encourage banks to use their positions of strength to support households and businesses.“

“In connection with the CARES Act facilities—including the two corporate credit facilities, the Main Street Lending Program, the Municipal Liquidity Facility, and the TALF—we will be disclosing, on a monthly basis, names and details of participants in each facility; amounts borrowed and interest rate charged; and overall costs, revenues, and fees for each facility.”

Meanwhile, Treasury Secretary Steven Mnuchin noted that he expects to see improvement in economy in H2.

Powell is due to testify, along with Mnuchin, on Coronavirus Aid, Relief, and the Economic Security (CARE) Act before the Senate Banking, Housing, and Urban Affairs Committee in Washington DC at 1400 GMT.