US Fed rolls out $2.3 trillion to backstop 'Main Street,' local govts

U.S. central bank says it would work through banks to offer four-year loans to companies of up to 10,000 employees and directly buy the bonds of states.

The U.S. Federal Reserve on Thursday rolled out a broad, $2.3 trillion effort to bolster local governments and small and mid-sized businesses in its latest move to keep the U.S. economy intact as the country battles the coronavirus pandemic.

The U.S. central bank said it would work through banks to offer four-year loans to companies of up to 10,000 employees and directly buy the bonds of states and more populous counties and cities to help them respond to the health crisis.

In announcing what may prove to be the Fed's most groundbreaking step in the current crisis, Fed Chair Jerome Powell said