Business continuity plans should be used constantly, not just when the crisis is at its peak, says the New York Fed’s head of financial services.
Fed officials also talk about the muni liquidity facility and efforts to help the economy in the wake of the COVID-19 pandemic.
The Federal Reserve committed Monday to conducting more asset purchases of Treasury securities and mortgage-backed securities and announced $300 billion in new financing for credit facilities.
The municipal market is dealing with a major liquidity event, with massive short-end selling.
The central bank said it was establishing the Commercial Paper Funding Facility to "support the flow of credit to households and businesses."
The Federal Open Market Committee lowered the fed funds rate target to between zero and ¼% in an emergency meeting on Sunday, but while analysts say the move was needed, they feel it will take more to offset the effects of COVID-19.
Career veterans call fallout from COVID-19 concerns on the municipal market worse than that of 9/11 and the 2008 financial crisis combined.
Strong data and reassuring words from a Fed official couldn’t stop market virus fears from spreading.