Fed: Still working on details of Main Street Lending Program

The Federal Reserve announced on Monday that it will soon introduce a new program called "Main Street Lending Program" to support lending to eligible small and medium businesses.

The Fed added that they are still working on the details of that program and noted that these new facilities are consistent with existing Fed powers, with lending to special purpose vehicles similar to programs used in the earlier crisis.

"We are hoping new programs will avoid technical forced defaults on corporate bonds as people practice social distancing," The Fed noted. "Main Street Lending Program in development could complement Congressional proposals to help small businesses, get credit to the full breadth of firms.

Market reaction

The US Dollar Index largely ignored these remarks and was last seen adding 0.15% on the day at 102.10.