REUTERS: Dallas Fed President Robert Kaplan on Friday said small businesses can expect to be able to borrow money backstopped by the Fed "very quickly" under a new program the U.S. central bank is readying to bolster firms hurt by the coronavirus epidemic.
Under the new Main Street lending program, the Fed would likely provide credit support to commercial banks so they can lend to small businesses, Kaplan said in an interview on Bloomberg TV. "You can be sure that we are working furiously here at the Fed to have this in place and work out the details. And you can have confidence that we are going to do that," he said.
Kaplan said he expects GDP to drop steeply in next quarter and unemployment to rise to the mid teens before falling to around 7per cent to 8per cent by year end.
(Reporting Ann Saphir; Editing by Sandra Maler)