{"id":897280,"date":"2020-04-02T11:39:31","date_gmt":"2020-04-02T17:39:31","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=897280"},"modified":"2020-04-02T11:39:34","modified_gmt":"2020-04-02T17:39:34","slug":"federal-reserves-power-continued-development-and-construction","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/federal-reserves-power-continued-development-and-construction\/","title":{"rendered":"The Federal Reserve\u2019s Powers to Pave the Way for Continued Development and Construction Through COVID-19"},"content":{"rendered":"\n

Virginia Trunkes and Endicott Peabody | Construction Law Zone<\/a><\/p>\n\n\n\n

As the Coronavirus has encapsulated the world, government go-aheads to construction firms are welcome relief to the industry. Lenders\u2019 collective reaction to the current economic concerns is another matter. Future financing is always imperative to ensure ongoing construction as well as new projects.<\/p>\n\n\n\n

Government responses are changing by the day, but the Federal Reserve has acted decisively and thoroughly in response to the economic threats following the Coronavirus outbreak. Staying true to its\u00a0Congressional mandate\u00a0to \u201cpromote maximum employment and stable prices, along with its responsibilities to promote the stability of the financial system\u201d, the Fed has devised numerous strategies to meet the persistent demand for redemptions and infuse money into the market. It has cut interest rates to zero, coordinated with other central banks to encourage purchases of the U.S. dollar, committed to purchasing an unlimited amount of U.S. Treasuries and mortgage-backed securities, and explicitly encouraged banks to reduce their reserves held against demand deposits (by eliminating entirely reserve requirements).<\/p>\n\n\n\n

Additionally, the Fed established five new Facilities that will be funded in part with $30 billion in equity from the Department of the Treasury:<\/p>\n\n\n\n