Fed tries CPR on flatlining economy

The U.S. central bank hopes trillions of dollars in new loans will keep American businesses afloat until the COVID-19 pandemic ends. The Federal Reserve took steps Thursday to pump $2.3 trillion into the economy by buying municipal bonds, making loans to medium-sized businesses, and other similar actions.

Where is all the money coming from? Some of it comes from the coronavirus relief bill President Donald Trump signed into law two weeks ago. The White House asked lawmakers to approve more funding for some of the rescue package’s provisions. Republicans said they were willing, but Democrats want to debate the request, which will take some time with Congress all but closed. Meanwhile, Russia, Saudia Arabia, and other oil-rich countries are working on an agreement to limit oil production, which is expected to boost the economy by raising oil prices.

Dig deeper: Read Sophia Lee’s report on how the COVID-19 shutdown endangers locally owned restaurants.