As signalled earlier this week by Secretary Mnuchin, the Fed opened its windows still wider early this morning, launching facilities it says will add as much as $2.3 trillion of liquidity for what it describes as “Main Street” businesses, state and local governments, and a PPP secondary market.  It has also significantly revised its corporate-loan and TALF facilities.  This report describes each facility in detail, noting changes to the Fed’s initial design (see Client Report COVID6) and the sharp increase in Treasury backstops reflecting the $454 billion allocated for this in the CARES Act (See FSM Report RESCUE72).  Doubtless reflecting the PPP’s troubled launch, the Fed notes in its Main Street program that it may be altered over time, seeking comment on how to do so until April 16.

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