Source: Bank for International Settlements
As prepared for delivery
Thank you, Tom, for the invitation to join this event.
As all of you know, in March the Federal Reserve-with backing from the U.S. Treasury-created a set of facilities to purchase corporate credit for the first time in its history. Many observers have credited the facilities with repairing market functioning in the corporate bond market and restoring the ability of many businesses to finance themselves through the pandemic. But my focus today is not the corporate bond market, credit spreads, or Wall Street. Rather, I’d like to connect the dots by explaining why these facilities were necessary to support jobs and the economic recovery on Main Street, and why transparency, access, and accountability were so critical to their implementation.
Before I review the initial success of these programs, I want to acknowledge the painful realities that many firms, employees, and households continue to face. For millions of Americans, it’s a long road back to normal.
I should also make it clear that these remarks are my personal views and not necessarily those of the New York Fed or the Federal Reserve System.