Trump: Fed, economy has a lot of ammunition left but we won't need it
President sees "big" fourth quarter and a "big year" in 2021
Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.
President Trump assured reporters Thursday that the Federal Reserve and the U.S. Treasury have "a lot of ammunition left" to help combat the coronavirus pandemic.
"Unlimited if we need it, but we won’t need it," Trump added.
President Donald Trump speaks during a listening session with African-American leaders at Ford's Rawsonville Components Plant that has been converted to making personal protection and medical equipment, Thursday, May 21, 2020, in Ypsilanti, Mich. (AP
Trump also reiterated that he expects the third quarter to be a "transition quarter" and that the economy will see significant growth in the fourth quarter and into 2021.
"It’s going to be the transition quarter and its going to be really good," Trump said. "But the fourth quarter is going to be big and next year is going to be a big year for this country."
The comments came during the president's visit to a Ford plant in Ypsilanti, Michigan.
FED'S POWELL SAYS US ECONOMY FACES 'WHOLE NEW LEVEL OF UNCERTAINTY' AMID CORONAVIRUS PANDEMIC
In the past eight weeks, the Federal Reserve has pumped nearly $2.9 trillion into the economy, and its balance sheet has expanded to $7 trillion.
FILE - This Jan. 14, 2010, file photo, shoes The Federal Reserve Building in Washington Thursday,. The Federal Reserve says that parts of the U.S. financial system came under severe strain in March as a global pandemic was shutting down much of the e
Actions the Fed has taken to support the economy include slashing interest rates to near-zero, purchasing an unlimited amount of Treasurys (a practice known as quantitative easing) and launching crisis-era lending facilities to ensure credit flows to households and businesses. It has also said it will buy corporate bonds and lend to states and cities.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The $2.2 trillion stimulus package has made $500 billion in emergency lending available to the Federal Reserve and the Treasury Department.
The Treasury Fund has $454 billion designated to support Federal Reserve lending programs to businesses, states and municipalities. The department has disbursed $37.5 billion of the funds to the Fed's Secondary Market Corporate Credit Facility, which is supposed to purchase corporate debt.
The Treasury Department has also announced five lending facilities, which have not currently been invested in yet, that will deploy other portions of the money. One of the five is the Main Street Lending Program, which the central bank launched to help get money to small- and medium-sized businesses, and the Primary Market Corporate Credit Facility, designed to maintain the flow of credit to large employers.
FILE - In this Tuesday, March 3, 2020 file photo, Federal Reserve Chair Jerome Powell pauses during a news conference to discuss an announcement from the Federal Open Market Committee, in Washington. Federal Reserve Chair Jerome Powell expressed opti
Federal Reserve Chairman Jerome Powell said during congressional testimony Tuesday that all of the central bank's crisis-lending programs will be up and running by the end of May.