As G20 leaders met over teleconference, they agreed to inject $5 trillion into the global economy in order to fight the coronavirus pandemic.
Leaders of the Group of 20 major economies pledged on Thursday to inject over $5 trillion into the global economy to limit job and income losses from the coronavirus and “do whatever it takes to overcome the pandemic.”
This shows more unity than at any time since the G20 was created during the 2008-2009 financial crisis, the leaders said they committed during a videoconference summit to implement and fund all necessary health measures needed to stop the virus’ spread.
The G20 leaders also discussed risks to fragile countries, notably in Africa, and populations like refugees, acknowledging the need to bolster global financial safety nets and national health systems.
“We are strongly committed to presenting a united front against this common threat,” the G20 leaders said their statement.
US Market Shrug off Unemployment Numbers
Even with a depressing unemployment report U.S. stocks posted another big gain Thursday.
Investors expect the House of Representatives to pass the $2 trillion coronavirus stimulus bill after the Senate did the same.
The Dow Jones Industrial Average soared 1,352 points (or 6.4%) to close at 22,552.17. That made for three straight sessions of increases, for a gain of 21.3% since the Dow closed at 18,591.93 on Monday.
So there’s a new bull market for the Dow, with a run of more than 20%.
The S&P 500 Index was up 6.2% on Thursday, also rising for a third straight day. The benchmark was up 17.6% from Monday’s close, but down 22.3% from its closing high Feb. 19.
The Nasdaq Composite Index was up 5.6% on Thursday, also rising for a third straight day, bringing the total gain to 13.7% since the close Monday. The Nasdaq was down 20.6% from its closing high Feb. 19.
The Fed: Open for Biz and Extending Record Credit
The Federal Reserve’s balance sheet expanded to a record $5.3 trillion in the week ended March 25 from $4.7 trillion in the prior week, the central bank said Thursday.
The Fed’s balance sheet is expected to continue to expand as the central bank steps in to try to keep credit flowing in all corners of the financial market, including Treasurys, commercial paper and municipal bonds. Much of this increase was driven by the Fed’s open-ended buying of U.S. government bonds.
In an NBC News interview aired Thursday on “The Today Show,” Fed Chairman Jerome Powell said there was essentially no limit to the Fed’s emergency lending ability.
“We can continue to make loans, and the point of all that is to support the flow of credit in the economy to households and businesses,” he said.
The Fed is only limited by how much backstop it gets from the Treasury Department.
“We’re required to get full security for our loans so we don’t lose money,” he said.