The Fed also reassured investors it will continue its asset purchase program while the U.S. recovers from the pandemic.
Overall, at least 77% of adults said they were at least “doing OK” in July, up from 72% in April.
The new program widens the pool of applicants and adds loan types.
The recommended lending facility would provide loans to small businesses that pledge their future receivables.
Impac Mortgage hopes the pause will give the Fed's efforts to stabilize the mortgage-backed security markets time to take effect.
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Fed members agreed, however, that they did not want to signal new cuts.
Officials say the move would reduce systemic risk by limiting the interconnectedness of large financial institutions.
