Q1 2020 COVID-19 Timeline
CDC issues statement on "cluster of pneumonia of unknown etiology" in Wuhan, China.
CDC announces enhanced screenings for people traveling to the U.S. from Wuhan, China.
Washington State announces U.S.’s first case of COVID-19.
S&P 500 closes at record high.
Federal Reserve Chairman Powell issues statement that the Fed is monitoring the economic risks of COVID-19.
February 29:
Washington State announces first U.S. death and declares a State of Emergency.
75 people in the U.S. have COVID-19.
100 people in the U.S. are confirmed to have COVID-19.
FOMC holds emergency meeting, lowers fed funds rate to 1% - 1.25%.
The Coronavirus Preparedness and Response Act signed into law providing $8.3 billion to combat COVID-19.
Declines in the S&P 500 trigger a Level 1 market-wide circuit breaker.
WHO declares COVID-19 a pandemic.
Declines in the S&P 500 trigger a Level 1 market-wide circuit breaker.
President Trump declares National Emergency unleashing $50 billion to combat COVID-19.
FOMC holds emergency meeting, announces multiple initiatives:
Lowers fed fund rate to 0% - 0.25%.
Will buy $700 billion in Treasuries and $200 billion in mortgage-backed securities; on March 23rd states these purchases are open-ended.
Encourages banks to use the discount window, intraday credit from the Fed and their reserves to lend to those affected by COVID-19; reduces reserve requirements to 0%.
Establishes U.S. dollar liquidity arrangements and swap lines with foreign central banks.
March 16:
Declines in the S&P trigger a Level 1 market-wide circuit breaker.
The Fed approves actions by the Boards of Directors of the Federal Reserve Banks to decrease the discount rate at the Banks to 0.25%.
March 17:
Fed announces the Commercial Paper Funding Facility and the Primary Dealer Credit Facility, enabling the Fed to lend up to $1 trillion to corporations through the purchase of commercial paper and other securities from primary dealers.
Federal Reserve Bank of New York will offer $1 trillion in daily repo for the remainder of the week; later extends this to the remainder of the month.
March 18:
Declines in S&P 500 trigger a Level 1 market-wide circuit breaker.
Families First Act signed into law extending paid sick and family leave; establishes dollar-for-dollar tax credits for employers; expands food services; increases Medicaid funding to states. Cost estimate range between $104 billion and $350 billion.
The Fed announces establishment of Money Market Liquidity Facility (MMLF) to provide $700 billion dollars to assist money market funds in meeting redemptions.
Treasury and IRS suggest deferring tax payment deadline.
California issues country's first stay-at-home order.
March 20:
Central Banks around the world take coordinated action to enhance U.S. dollar liquidity.
The Fed expands MMLF to make loans to financial institutions.
Multiple Financial Regulatory Agencies issue joint statement encouraging banks to work with borrowers, state they will not categorize loan modifications as troubled debt restructuring.
The Fed announces emergency initiatives:
Will provide up to $300 billion dollars in new financing for corporate bond and loan issuance and liquidity for outstanding corporate bonds.
Will purchase Treasuries and mortgage-backed and commercial mortgage-backed securities in whatever amount required to support market functions.
Reestablishes the Term Asset-Backed Securities Loan Facility with $100 billion by lending on a non-resource basis to enable the issuance of asset-backed securities backed by auto and student loans, credit card receivables, and equipment and floorplan loans.
Expands MMLF to include municipal bonds and bank certificates of deposit.
Expands the Commercial Paper Funding Facility to include high-quality, tax-exempt commercial paper.
Announces plan to establish a Main Street Business Lending Program to support lending to small-and-medium-sized businesses.
Initial unemployment claims rise to 3.2 million, the highest level in the history of the series (since 1967).
CARES Act signed into law, the largest stimulus in history, authorizing $2 trillion in spending and tax relief to offset the economic impact from COVID-19.
Multiple events:
188,000 people in the U.S. have contracted COVID-19 and 3,873 people have died.
21 states have issued “stay-at-home” orders effecting approximately 200 million people, or 61% of the U.S. population.
In Q1 2020, the Fed purchased over $1 trillion in Treasuries to support the market.
Source: St. Louis Federal Reserve www.fraser.stlouisfed.org