From a somewhat longer-term perspective, whether a change in firms’ production network strategies will become widespread, in turn leading to increasingly building up production capacity in Japan rather than overseas, depends on their medium- to long-term projections for exchange rates.
The Federal Reserve is also preparing to launch the Main Street Lending Program, which is designed to provide loans to small and medium-sized businesses that were in good financial standing before the pandemic. Importantly, with these and other facilities that the Federal Reserve has not employed before, public input has been crucial in their development.