The Federal Reserve and Treasury Department today announced $800 billion in credit and mortgage programs intended to keep the country from slipping further into recession.
Through its consumer debt program, the Fed will lend up to $200 billion to the holders of securities backed by various types of consumer loans such as credit cards, auto and student loans.
Through a separate mortgage program, the Fed will buy up to $600 billion in mortgage-backed assets.
Up to $100 billion of that will go toward direct obligations from mortgage giants Fannie Mae and Freddie Mac as well as the Federal Home Loan Banks. The remaining $500 billion will be used to purchase mortgage-backed securities.
Source: Associated Press