The US Federal Reserve on Thursday rolled out a host of new measures aimed at getting another $2.3 trillion to bail out small and mid-sized businesses and cash-strapped local governments. This saw stocks rallying on renewed hopes of the economy bouncing back from the verge of collapse, as the deadly coronavirus continues to bite into the profits of businesses.

The United States has been one of the worst hit economies with coronavirus cases climbing every day. Total coronavirus cases in the United States crossed 435,000 with deaths touching almost 15,000. Globally, the virus has infected more than 1,500,000, with more than 90,000 deaths.

What measures has Fed planned

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The Federal Reserve announced a slew of measures that included details regarding its Main Street business lending program. In what is likely to be its largest rescue effort ever, the US central bank said that one of the major steps would be to offer four-year loans to companies with up to 10,000 employees and less than $2.5 billion in revenues in 2019.

Also, the Fed would directly buy the bonds of the states, counties and populous cities so that they could use the money to more effectively fight the pandemic. The Fed also gave details on its plans of market interventions, plans of buying corporate bonds. The central bank plans to buy corporate bonds both at the investment-grade level as well as high-yield bonds.

However, the Fed also cleared that the priority would be to fight and eradicate the health hazard first. Our country's highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus," said Fed Chairman Jerome Powell in a statement.

Programs to total up to $2.3 trillion

The Federal Reserve
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TheFed said thatthe programs would total up to $2.3 trillion and include the Payroll Protection Program and other measures that will aim at getting more money for small and mid-sized businesses. The announcement came just after the Labor Department announced that 6.6 million new jobless claims were filed last week.

The Fed also plans to boost municipal finances with a $500 billion lending program by establishing a new Municipal Liquidity Facility. The Treasury will provide a $35 billion backstop to the program to guard against potential losses. The Main Street loans would be a minimum of $1 million and maximum $25 million or an amount equivalent to "when added to the Eligible Borrower's existing outstanding and committed but undrawn debt," the Fed said. Moreover, it won't exceed four times the Eligible Borrower's 2019 earnings before IBIDTA whatever is less, the Fed added. Also, the central bank will purchase up to $600 billion in loans.