⁍ The Federal Reserve’s emergency lending facilities have been largely effective at stabilizing financial markets.

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⁍ But small- and medium-sized businesses need more assistance, Dallas Fed President Robert Kaplan said.

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⁍ Some small businesses that were struggling financially will fail because of the resurgence in coronavirus infections.

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– The Federal Reserve still has “plenty of fire power” to support the US economy, but it needs to do more to help struggling small businesses, a top Fed official said Thursday. “One area where financial conditions are not loose and we are seeing stress is in small, mid-sized businesses, particularly those in person-to-person contact industries,” Dallas Fed President Robert Kaplan told the Official Monetary and Financial Institutions Forum Foundation, per Reuters. “I think there is probably a debate to be had, what can we do to continue to help small businesses.” He said the Fed’s emergency lending facilities have been effective at stabilizing financial markets, but small- and medium-sized businesses need more assistance.