On Friday the price of United States corporate debt fell as investors bet that credit conditions could deteriorate if key pandemic lending programs at the Federal Reserve are allowed to expire on December 31.
Euro zone inflation will remain negative for the rest of the 2020, European Central Bank Vice President Luis de Guindos said today, just after fresh data showed price growth hitting a more than four year low.
The Federal Reserve’s $3 trillion bid to stave off an economic crisis in the wake of the Covid-19 outbreak is fuelling excesses across United States capital markets. The U.S. central bank has pledged unlimited financial asset purchases to sustain market liquidity, increasing its balance sheet from $4.2 trillion in February to $7 trillion today.
The Swiss National Bank renewed its commitment to an ultra-expansive monetary policy today, saying its unconventional measures will help Switzerland deal with its sharpest recession in decades.
The Federal Reserve, which has pumped trillions in emergency funding into United States financial markets to stem the damage from the Covid-19 pandemic, is expected on Wednesday to reiterate its promise to do whatever it takes to support the world’s largest economy.
On Wednesday South Korea will announce measures on to ease U.S. dollar funding shortages in its local market, two government officials familiar with the matter told news agency. The measures will aim to address heightened funding stress involved with the rising cost of raising U.S. dollar funds in Korean financial markets, officials said on Tuesday, without elaborating.
The Federal Reserve’s efforts to boost reserves in the banking system helped to calm markets and make the much anticipated year-end period a non-event, and officials are still debating the details of a potential standing repo facility, a top Fed official said on Wednesday.