Economics
Fed Hopes for Recovery While Preparing for a Second Virus Wave
- Fresh outbreaks in some states pose risks to economic recovery
- Powell, Mnuchin to testify to Congress Tuesday on virus crisis
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The Federal Reserve is preparing for the possibility of an economically debilitating second wave of coronavirus infections even as it’s hoping that can be avoided.
In launching the Main Street and corporate lending facilities this month and starting to buy corporate bonds, the central bank has laid the groundwork for stepped-up support for the economy and financial markets should they be undermined by fresh outbreaks of the virus.