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Federal Reserve to lend up to $300B to businesses, cities

With an economy shaken by the coronavirus, or COVID-19 pandemic, the Fed is hoping to stabilize markets and interest rates.

WASHINGTON, D.C., USA — Editor's note: With everyday life becoming upended, kids naturally have lots of questions... even if they don't ask you. The above video has some advice for talking to your children about the coronavirus.

In a series of sweeping steps, the Federal Reserve will lend to small and large businesses and local governments as well as extend its bond buying programs. 

It's all part of the Fed's ongoing efforts to support the flow of credit through an economy ravaged by the coronavirus pandemic. 

The Fed said Monday that it will set up three new lending facilities that will provide up to $300 billion by purchasing corporate bonds, buying a wider range of municipal bonds, and purchasing asset-backed securities. It also says it will buy an unlimited amount of Treasury bonds and mortgage-backed securities in an effort hold down interest rates and ensure those markets function smoothly during the uncertainty caused by COVID-19. 

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At NEWS CENTER Maine, we’re focusing our news coverage on the facts and not the fear around the illness. To see our full coverage, visit our coronavirus section, here

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