Federal Reserve Chair Says It Is “Days Away” From Main Street Loans
Summary
- Federal Reserve Main Street loans are “days away”
- These loans targeted mid-size businesses and can range up to $100 million.
- Federal Reserve balance sheet surges past $7 trillion.
In an online event with Princeton University economist Alan Blinder, the Chair of the Federal Reserve, Jerome Powell said the Fed is “days away” from making the first loans as part of the Main Street Lending Program. The program targets mid-sized businesses that do not qualify for the smaller Paycheck Protection Program, but not big enough to weather the crisis.
We have three facilities that are part of it. They’re meant to reach out to different parts of that broad space. In the meantime, many of those companies are finding that they can borrow from banks. Others are waiting for us to get our facilities up and running.
Jerome Powell (Chairman of the Federal Reserve)
The Main Street Lending program offers loans to mid-sized businesses with less than 15,000 employees. The Paycheck Protection Program on the other hand targets business with fewer than 500 employees.
The Main Steet Lending program also offers far larger loans than it’s small business counterpart. The program offers loans ranging from $500,000 to $100 million, while the Paycheck Protection Program’s (PPP) average loan size is just north of $100,000 at $114,144.
Hedge Against Hyperinflation
As reported earlier by The Crypto Associate, the Federal Reserve balance sheet has recently surpassed $7 trillion, reaching a new high. In addition, the Fed’s new Main Street loans further Bitcoin’s long-standing narrative as a hedge against hyperinflation.
With the liquid money supply in the United States up 20% since January, may voice concerns over inflation amid the pandemic. Limited inflation assets like gold and Bitcoin, may serve as a hedge against hyperinflation. During the pandemic, both asset classes have seen a surge in interest and price.
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