Fed is scaling back market pumping to $7 billion per day
The Federal Reserve is scaling back the pace of debt buying to support the economy in the current crisis. The US central bank umbrella will buy $ 7 billion in debt daily from Monday, May 11, instead of $ 8 billion today.
The Fed has bought hundreds of billions of dollars in debt securities in just two months. By pumping money into the financial system, the central bank umbrella hopes to prevent money markets from stalling in the midst of the corona pandemic.
Last week, the daily buying pace was already reduced from $ 10 billion to $ 8 billion. Between March 19 and April 1, the provisional peak was reached with USD 75 billion in debt securities pledged daily. Then the tempo was lowered in steps.